Archive for December, 2010
Review of 74 tax reliefs
The OTS was established by George Osborne and has been charged with finding ways of reducing the complexity of tax matters and reliefs. In their first consultative document issued on Monday they have identified 74 reliefs that they feel need review either because of their historic nature or because they were introduced for a point of policy that has weakened. Read more
There has been extensive media coverage of the government’s justification of the £7bn loan to Ireland. The Republic is one of our largest export markets (5% of total exports) and UK banks have lent huge sums to their Irish counterparts – we are in this together, whether we like it or not.
This article sets the facts in context, highlights some of the issues not fully explored in the press and keeps you informed about the actions we are taking in response to the current problems.
We are responsible for the delivery of unsecured pension income to many clients via SSAS’s or SIPP’s and in addition to taking responsibility for investment strategy, we also advise on funding, access and withdrawal strategies.
Changes are afoot to introduce “flexible drawdown” and to reduce the tax burden post age 75.
The June Budget confirmed the coalition’s intention to abolish the requirement to either buy an annuity or be forced to take a reduced equivalent income from pension funds beyond age 75. They have since introduced transitional rules for those who turned 75 on or after 22nd June 2010, which allow greater income and death benefit flexibility in the short term, but those already over 75 are stuck with the old rules for now.
By Fiona Sutherland
One of the less palatable changes announced in the Chancellor’s emergency budget back in June this year was the increase in the marginal rate of capital gains tax (CGT) from 18% to 28%.
The CGT increase had been widely anticipated, but the pill was sugared for many by a largely unexpected but significant increase to one of the key CGT reliefs, Entrepreneurs’ Relief (ER) from £2m to £5m. Up until March this year, the limit for ER had only been £1m.
As a result, ER has now become very valuable and can result in a saving of up to £900k per individual.