June 29th, 2009
Q. Duncan, we’re a lesbian couple, can you provide us with specialist tax advice?
Yes. HMRC has produced a useful guide on the taxation of, and benefits available to, lesbian, gay, bisexual and transgender customers.
The leaflet gives guidance on:
- Income Tax
- National Insurance Contributions
- Inheritance Tax
- Capital Gains Tax
- State Pensions
- Tax Credits
The guide is available here. www.hmrc.gov.uk/leaflets/Pride1.pdf
Tags: civil partnerships, gay, lesbian tax advice, specialist tax advice
Posted in Friday's Financial Question | No Comments »
June 18th, 2009
CAPITAL GAINS TAX PLANNING
Synopsis: The publicity surrounding the subject of MPs “flipping” properties may well have brought the CGT second residence rules under closer scrutiny. Here, we consider how those rules work.
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Tags: CGT planning, flipping, principal private residence relief
Posted in Friday's Financial Question | No Comments »
June 12th, 2009
HUSBAND AND WIFE AND CIVIL PARTNERSHIPS/INDEPENDENT TAXATION/CIVIL PARTNERSHIPS Synopsis: The arrival of the 50% rate of tax in April 2010 should be a spur for affected couples to ensure they are taking full advantage of independent taxation.
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Tags: 50% tax rate, independent taxation, tax planning
Posted in Friday's Financial Question | No Comments »
June 11th, 2009
IDEAS AND OPPORTUNITIES Synopsis: With income tax rates set to increase to 50% for persons with taxable income of more than £150,00 from 6 April 2010, people likely to be affected will be interest in ways in which investments can be sheltered from taxation - investing in capital growth rather than income is one way.
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Tags: 50% tax, Income Tax Planning
Posted in Daily £££ Chatter | No Comments »
May 13th, 2009
Date posted: Wednesday, May 13, 2009
It was announced in the Budget that the over 50´s could, from 6 October 2009 invest up to an additional £3,000 in an ISA to enable them to contribute £10,200 in tax year 2009/10. For 2010/11 the annual subscription limit for all qualifying investors will rise to £10,200.
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Tags: 200, ISA, over 50s, £10
Posted in Friday's Financial Question | No Comments »
April 30th, 2009
We all know that the vast majority of financial-media opinion only misleads or confuses. Very rarely are these experts held to account and their views are never back tested, so you should really enjoy comedian Jon Stewart’s rant. Although a US viewpoint, I think it translates rather well.
The edited version (2 mins) is here.
Posted in Daily £££ Chatter | No Comments »
April 29th, 2009
It has been reported that Mike Williams, the director of personal tax at the Treasury, has explained to the Treasury Select Committee that the Government expected to receive only 31% (£1.1 billion) of the possible total income from the tax increase announced in the Budget.
In his Budget statement the Chancellor estimated that the 50p income tax rate would raise around £3.4 billion, but figures revealed on Tuesday suggests that he could, in fact, lose £2.3 billion of this via the “behavioural effects” of introducing the rate. Many of the estimated 350,000 caught by the new rate will find legal means to avoid the rate by taking themselves out of tax completely and as such not only losing the Treasury revenue from the 50% band, but also from the 40% band they had previously paid.
COMMENT
It has emerged that this year HMRC was preparing to spend a quarter of its £4 billion budget to crack down on tax evasion, and we have to assume part of this will be used to stop taxpayers avoiding the 50 pence rate. However, it seems that those who will be hit by the rate are not looking to tax planning measures to avoid the rate, but to take more drastic measures such as taking early retirement, working less hours, or moving abroad. Though it may have grabbed the public´s interest on its announcement, in reality the introduction of the 50 pence rate may be somewhat of a “white elephant”.
Tags: 50p tax rate, budget update
Posted in Daily £££ Chatter | No Comments »
April 23rd, 2009
From 6 April 2011 tax relief on pension contributions is to be restricted.The relief will be restricted to the basic rate of income tax - currently 20% - for those individuals earning in excess of £180,000. Relief will be tapered between 20% and 40% for those earning between £150k and £180K.
Transitional provisions will take effect immediately , effectively closing any window of opportunity between now and 6 April 2011. The rules are complex and more information can be found by clicking HERE
Tags: budget update, pension relief, Post budget
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April 22nd, 2009
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Here are the key points of Alistair Darling’s 2009 Budget:
CIGARETTES, ALCOHOL AND FUEL
- Alcohol taxes to go up 2% from midnight - one estimate is that it would put 5p on the average pint of beer
- Tax on tobacco to go up by 2% from 6pm
- Fuel duty to rise by 2p per litre from September, then by 1p a litre above indexation each April for the next four years
CAR SCRAPPAGE SCHEME
- From next month until March 2010 motorists to get £2,000 discount on new cars if they trade in cars older than 10 years
TAX
- Income tax for those earning more than £150,000 to rise to 50% from April 2010
- Tax relief on pensions to be reduced for people on more than £150,000 a year from April 2011
UK ECONOMY
- Economy forecast to shrink 3.5% in 2009
- Growth expected to pick up in 2010, expanding by 1.25%.
- Economy to grow by 3.5% annually from 2011
- Public borrowing to increase to £175bn this year
- Borrowing levels to rise by £173bn, £140bn, £118bn and £97bn in years after
- Consumer price inflation to fall to 1% by end of year.
- Capital investment to continue at historically high levels until 2012
JOBS AND TRAINING
- Government support for economy to protect 500,000 jobs
- All long-term unemployed under 25s to be offered job or training
- £1.7bn additional resources for Job Centre network
- £250m funding to help people get work experience in growth industries
- Funding to create 54,000 new places in sixth form education
HOUSING
- Scheme to guarantee mortgage backed securities to boost lending
- Stamp duty holiday for homes up to £175,000 to be extended to end of year
- Extra £80m for shared equity mortgage scheme
- £500m to kickstart stalled housing projects - including £100m for local authorities to build energy efficient homes
- £50m to upgrade housing for the armed forces
GOVERNMENT SAVINGS
- Tax loopholes and schemes identified which could provide £1bn of extra revenue over the next three years if closed
- An extra £9bn in efficiency savings is planned
- Public spending to be cut from 1.1% next year to 0.7% in 2011-2012
BENEFITS
- Child tax credit to rise by £20 by 2010
- Child trust funds for disabled children to rise by £100 a year, £200 a year for severely disabled children
SAVINGS
- Annual limit for tax-free ISAs to rise to more than £10,000 for over-50s this year and for everyone else next year
ENVIRONMENT
- Britain commits to cut carbon emissions by 34% by 2020
- An extra £1bn to help combat climate change by supporting low-carbon industries
- £525m for offshore wind projects over the next two years
- £435m support for energy efficiency schemes for homes, firms and public buildings
- £405m to encourage low-carbon energy and advanced green manufacturing
HELP FOR BUSINESS
- Help for loss-making companies extended - they will be able to reclaim more taxes paid in the last three years until November 2010
- Businesses’ main capital allowance rate doubled to 40%
- New £750m strategic investment fund to help emerging technologies and regionally important sectors
PENSIONERS
- Grandparents of working age who care for their grandchildren will see that work count towards their entitlement for the basic state pension
- Winter fuel allowance to be maintained at higher level - £250 for over 60s and £400 for over-80s - for another year
- The basic state pension will be increased by at least 2.5%, regardless of inflation
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Tags: Alistair Darling's 2009 Budget, At-a-glance: Budget 2009
Posted in Daily £££ Chatter | No Comments »
April 15th, 2009
Perk to be withdrawn?
Over the years we have always been loath to scaremonger ahead of Budgets. But on this occasion we feel we ought to draw to your attention the risk that higher rate tax relief on pension contributions could be abolished in next week’s Budget (22nd April).
The Irish government is under similar pressure, and in their Budget on 7th April they introduced a number of unpopular measures, with more in the pipeline later in the year e.g. halving unemployment benefit for younger people, similarly for child care, and abolishing the Christmas bonus for welfare recipients.
If Gordon Brown is also going to have to introduce unpopular measures, it is difficult to see how higher rate tax relief on pension contributions can be sustained long-term.
We are suggesting that clients bring forward planned lump sum pension investment, ahead of the Budget - there is nothing to lose in doing this, and a significant chunk of tax relief can be locked-in.
Let us know as soon as possible if we can help.
Tags: pension tax relief
Posted in Daily £££ Chatter | No Comments »
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