Latest Private Client Tax

21st April 2016 Income Tax Computation

2016/17 Personal Allowance: Utilise against dividend income? The start of the 2016/17 tax year saw the introduction of the personal savings allowance, which tax exempts up to £1,000 of savings income for basic rate tax payers and £500 for higher rate taxpayers (additional rate taxpayers do not receive an allowance).  In addition, a new £5,000…

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14th April 2016 SDLT Planning

Transferring Second Property into Joint Names: Beware SDLT trap! We commonly advise married clients who are considering a transfer of rental property from one spouse into joint names. Where the owner spouse is a higher rate taxpayer, there is often a potential to make use of the other spouse’s basic rate tax band. The potential income…

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21st March 2016 Capital Taxes Planning

Budget 2016: New CGT planning opportunities. George Osborne’s latest Budget heralded an unexpected reduction in CGT, lopping 8% off both the 18% and 28% rates. But not for residential property- George continued his attack on residential landlords. However, it may well be that sales of other assets are now best deferred until post 5 April…

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22nd February 2016 Taxation of Dividend Income

PAYE Codes: Starting to reflect new dividend tax rules. Ahead of the start of the 2016/17 tax year, HMRC have recently begun issuing updated PAYE coding notices, which will determine how much tax is deducted at source on income paid through the PAYE system. They have provided some general guidance here : https://www.gov.uk/tax-codes/what-your-paye-coding-notice-means In addition…

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13th October 2015 Investment Income Taxation

New Dividend Tax Rules: Planning opportunities during transition. In his 2015 Summer Budget George Osborne rewrote the rules for calculating the income tax that individuals and trusts pay on their dividend income: Abolished the tax credit, Introduced a £5k tax free dividend allowance, Increased all of the tax rates on dividend income by +7.5%. As these…

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13th July 2015 Incentivising Staff

EMI Share Options: the tax advantages. Enterprise Management Incentives (EMI) are a tax advantaged share option scheme that can be used to provide an incentive to key staff. The key tax advantage of EMI options in most cases is that no income tax or national insurance will be payable on the exercise of the option. The…

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12th May 2015 New EIS

EIS Relief: HMRC publish new procedures. HM Revenue and Customs (HMRC) is introducing new processes to help manage applications for advance assurance and EIS compliance statements from companies for investments made on or after 6 April 2015 that fall outside certain limits. With immediate effect, HMRC will not process advance assurance applications in respect of…

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23rd March 2015 Transferrable Personal Allowance

As long as we both shall live: I promise to share my personal allowance with you.. From April 2015, Finance Act 2014 allows spouses and civil partners who cannot claim the married couples allowance (therefore those born on or after 6 April 1935) to transfer a fixed amount of their personal allowance to each other to…

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24th January 2012 Top 10 Tax Elections to Minimise Tax

Examples of the most helpful and generous tax elections and claims include: s222(5a) TCGA 1992 (Nomination of main residence) This capital gains tax election, often referred to as ‘flipping’, enables taxpayers, who own and reside in more than one home, to inform HMRC which of these homes is their principal private residence. For those who…

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7th August 2019 Tax Free Benefits in Kind

Certain benefits in kind still remain entirely tax free, and can be used in flexible remuneration and/or salary sacrifice situations: Pension scheme contributions (up to £40,000 per employee per annum, plus potential ‘catch-up’ from previous 3 years). Childcare vouchers or employer supported childcare (up to £55 per week, depending upon personal tax status), Provision of…

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