Scotsman Money Budget podcast: unpicking Rachel Reeves’s far-reaching statement

Some key points from their discussion, and the impact of the Budget on Scotland, have been captured for The Scotsman Money Budget-special podcast. 

Taking part in the roundtable discussion, co-chaired by The Scotsman’s Rosemary Gallagher and Josh King, were Bruce Hendry, executive director and head of Edinburgh office at Calton; Euan Fernie, partner at MHA accountancy group; Tom Gillingham, partner at Charlotte Street Partners; and Christine Yuill, partner and head of tax at Burness Paull.

In the Budget, it was announced that from April next year, the first £1 million of agricultural property relief and business property relief will continue not to attract IHT. But at over £1m, IHT will be applied with relief of just 50 per cent.

Fernie said: “This puts a huge burden on families who don’t really see the farm as a huge asset; they are the custodians of the farm for the next generation.”

On the move to bring pensions within IHT, Bruce said: “It is unwelcome, but you can see where they are coming from. Pensions are there to sustain you throughout your life.”

Reacting to increased investment in HMRC, Yuill commented: “News that systems are going to get better is obviously very welcome…We hear a lot of frustration from our clients trying to use HMRC systems.”

Focusing on north of the border, Gillingham said: “A few measures in this budget will have a disproportionate impact on Scotland.” He referred to duty rates on whisky going up and the Energy Profits Levy. “We’re going to have a Scottish Budget in December where there will be a second round of all this”, he added.