The Emergency Budget on 22 June 2010 delivered a raft of changes designed to align government spending with income over the lifetime of the current Parliament. The announcement received mass coverage regarding the changes to corporation tax, capital gains tax and the increase in the standard rate of VAT on 4 January 2011. (more…)
Posts Tagged ‘higher tax rate’
UK Tax increases and decreases ahead
Tuesday, July 20th, 2010Remittance basis
Thursday, February 4th, 2010If you are not UK domiciled, you will only benefit from the remittance basis if your unremitted overseas income and gains are less than £2,000 or you make a claim. This claim will deny you personal allowances and capital gains tax annual exemption, and might also trigger a £30,000 tax charge. (more…)
Going to live abroad
Thursday, February 4th, 2010The tax rules have changed recently and you will need to take care if you are hoping to leave the UK and relinquish UK residence for tax purposes. You should also be aware that the approach taken by Revenue & Customs to taxpayers leaving the UK for tax purposes has hardened considerably recently, so you will need to consider your medium term plans very carefully if you wish to establish non residence. (more…)
Looking forward – 2010
Thursday, January 14th, 2010Bearing in mind the new high rates of tax on income over £100,000 or taxable income over £150,000 it might be possible to accelerate income into 2009/10 to reduce or eliminate the impact of the new higher rates, by drawing down additional dividends or paying or voting additional salary or bonus.
Accelerating income will, however, have the downside of accelerating the tax payments on that income, but if you are likely to be liable at either 50% or 60% effective rates, then this is worth considering.
The interaction with the new pensions forestalling legislation must not be overlooked, however.
You may consider that pension payments and donations to charity would benefit you more in 2010/11 than in 2009/10, so it may also be worth delaying these. Before making any decisions about pension contributions you will need to take specific detailed advice if your income in 2009/10 or either of the two preceding years exceeds £130,000.
