Contents
Don't leave it to chance
Family tax planning
Tax payback - tax credits
Pay rise for the other half?
Jam today, or jam tomorrow?
Pension payments and tax relief
Employee pensions
Children's pensions?
Borrowings and tax
Investment limits
Employee cars and fuel
Give generously and save tax
Capital gains
Capital losses
Second homes
Company or trade?
Inheritance tax
Children's savings?
Business tax
Two jobs = too much NIC?
Should VAT be flat?
Mutiny and bounty
One careful owner
A matter of trust
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Up to 1998, it was common to "bed and breakfast" shares just before the end of the tax year, in order to take advantage of the annual tax-free allowance for CGT. This particular plan - selling a shareholding and buying back exactly the same thing the next day - no longer works, but it is still possible to achieve the same result (at the cost of more stockbroker's commission) by switching to a different investment. On a substantial portfolio and over a period of years, this can save a great deal of tax. The "taper relief" which was introduced to replace the old inflation allowance goes up for those assets which have been held since before 1998 on 6 April each year. If you are thinking of realising some investments, it may be best to wait until then - and you'll pay any tax a whole year later, as well. Taper relief is much more generous for "business assets" than it is for "investments". From 6 April 2004, property let to an unincorporated trader - such as a sole trader running a shop - has qualified for business assets taper in the hands of the landlord. The trouble is that the previous years of non-business ownership up to April 2004 still only entitle you to the lower rate of relief. The complications of taper relief are such that the most important thing is to understand what your assets count as, and how much relief you are likely to get. It's better to take advice on this early, rather than to be disappointed by a lower level of relief than you expect after you have sold something.
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© Bayar Hughes & Co., 2010.