It is generally believed that the Budget announcement on Tuesday may herald major changes to taxation thresholds, and significant changes to Inheritance Tax and Capital Gains Tax.

So it is not too late to take some straightforward action now to benefit from the current tax regime ahead of the Budget, but you will have to act quickly.

For example:

Gifts - there is no immediate inheritance tax liability on most gifts now, but this might change after the Budget so that the gift becomes devalued by the taxation charge arising. So, can you make gifts ahead of the Budget to avoid this potential pitfall?

Capital Gains Tax - have you considered "bed and breakfasting" your assets, especially recently-acquired assets which may be vulnerable to a change in taxation treatment?

The rumour is that there will be a different rate of tax for short-term rather than long-term gains.

Pensions - the tax relief on personal pensions contributions may be reduced from the maximum 40 per cent available at the moment, to the basic rate of just 23 per cent.

Should you consider making contributions pre-March 17 to ensure maximum tax relief?

PEP/TESSA - review all your investments to ensure that you are making maximum use of all available tax breaks?

Of course, without a crystal ball it is impossible to predict exactly where the Chancellor will strike. Nonetheless, there are opportunities for safeguarding your finances.

Simple measures are available to ensure that you do not encounter any adverse changes in taxation legalisation unnecessarily.

For further information you should contact your normal professional advisor.

Peter Meredith is a partner with Horwath Clark Whitehill

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.