Tax Planning.
Inheritance Tax Planning (IHT)
Traditionally a tax only for the very wealthy. However with a threshold of £312,000 (£624,000 married couples and civil partners) more and more people are now having to consider Inheritance Tax.
See our Guide To Inheritance Tax for more information or contact us
Capital Gains Tax (CGT)
You may be pleased to hear that the new tax year has brought with it a whole regime change for Capital Gains Tax. Out goes indexation, out goes taper relief and out go marginal rates of tax. From 6 April 2008, everything has got much simpler with all gains falling subject to a new, flat rate of just 18%, above the Annual Exemption (£9,600 for individuals 2008/09).
Winners and losers
As with any change, this new regime
brings both winners and losers. Higher rate tax payers are the most likely to benefit as the
liabilities on all non-business assets and rental properties effectively fall to 18%. For
entrepreneurs, a new relief is also available - to help preserve the positive environment for
new business growth which a rise from the old business rates might otherwise have spoiled.
However, for some basic rate tax payers, there could be a downside, particularly if you have a Save As You Earn scheme (SAYE). Similarly, those who benefited from the lower rate on business assets will see a sharp rise in their liability once that £1 million limit has been exceeded. Finally, the lowering of the capital gains tax rate to below that of basic rate income tax could mean the benefits of certain investment products become a little more limited than before.
Please note: the Financial Services Authority does not regulate tax planning and advice
