DIVIDEND TAX For many years dividends have come with a 10% tax credit which means that there’s no additional personal tax to pay on dividends received by basic rate taxpayers – the basic rate of tax on dividends is currently 10%. However, the Summer Budget has announced that, from 6 April 2016, this tax credit […]
Protect Your Pension from 55% Tax Charges
HMRC has just issued a reminder that the deadline to protect large pension funds from the decrease in the lifetime allowance is fast approaching. Lifetime allowance. There is a limit to the size of a pension pot that qualifies for tax breaks. If your pension fund exceeds this limit, the lifetime allowance, then there will be […]
Transferable Tax Allowance for Married Couples
From 2015/16, married couples and civil partners can transfer up to £1,000 of their personal allowance to their partner, but only if neither individual pays tax at the 40% rate. It is therefore a modest tax break, worth a maximum of £200 each tax year, but every little helps (as we are often reminded)! The […]
Tax issues for UK Vodafone shareholders
Following the announced sale by Vodafone of its stake in a US mobile phone network, Verizon Wireless, what are the UK tax implications for owners of Vodafone shares? The deal. It’s anticipated that Vodafone shareholders will receive shares in Verizon Communications, Verizon Wireless’s parent (with the base cost for capital gains tax purposes split between […]
High Income Child Benefit Charge (HICBC)
The HICBC was introduced on 7 January 2013 and applies to couples where: One partner has received Child Benefit payments after 7 January 2013, and Either partner has income in excess of £50,000 a year. The person with the highest income, if both are over £50,000, will be liable to pay the charge. It will […]
Coding Out Tax Debt
HMRC are looking to increase this activity, which involves the collection of tax debts by way of reducing your Code Number used when calculating PAYE deductions on earnings. There would be no change to the current £3,000 maximum that can be coded out for individuals earning less than £30,000, and the current coding out limit […]
100% Tax Write-off for a Low Emission Car
If you buy a new car for your business that has CO2 emissions of no more than 95g/km, you can claim a full deduction against your business profits. There are approximately 30 cars that fall into this category, but the list is growing. If you run your business as a limited company, the private use […]
The High Income Child Benefit Charge & How to Avoid It
HOW IT WORKS In 2012/13 and later tax years, a proportion of the child benefit received by an individual may be taxable if the individual has “adjusted net income” exceeding £50,000 and either: a. he was entitled to child benefit for any week in the tax year, and no other person who was his partner […]
The Personal Allowance Trap
As you may know, there is a nasty tax trap by reference to the gradual withdrawal of the personal allowance if your taxable income exceeds £100,000. This is via a reduction of £1 of allowance for every £2 of excess taxable income. For 2013/14 the trap potentially applies to even more taxpayers with the increase […]