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Please see Tax E-News archive
The Pension Annual Allowance tax charge depends on the individual’s marginal rate of tax.
Last month we looked at tax planning to minimise or eliminate the high income child benefit to keep both husband and wife (or civil partners) looking after a child below the £50,000 threshold.
The latest Finance Act has reduced the tax writing down allowance for motor cars that emit more than 110 grams of CO2 to just 6% on a reducing balance basis from April 2019.
As set out in the following table employers need to submit details of benefits in kind provided to directors and employees by 6 July 2019.
Gifts and awards of shares in companies, often known as employment related securities (ERS) are commonly used by employers to reward, retain or provide incentives to employees.
Hospital doctors and GPs are lobbying the government to amend the pension tax rules as the current system of restricting tax relief on pension contributions means many doctors paying almost all of the extra salary back in tax if they take on additional responsibilities or work additional shifts. This is an issue that doesn’t just affect doctors as it potentially restricts the tax relief available to other individuals with high income.
The start of the new tax year means that shareholder/ directors may want to review the salary and dividend mix for 2019/20.
The substantial increase in the higher rate threshold to £50,000 is good news for many taxpayers.
Last year HMRC carried out a review of rent a room relief and it was proposed that the availability of this generous relief would be restricted to situations where the taxpayer was resident for at least part of the time when the “lodger” was paying rent.
The government is currently consulting on important changes to private residence relief that are likely to be introduced from 6 April 2020.