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The 50 Day Budget and idle speculation

We have a new Government in place and a new fiscal policy which we will learn about in the coming weeks. We know that there are going to be tax rises and we know something of what they will be, as well as of other measures.

  • The National Insurance increase planned for April 2011 will be only for employees. The “jobs tax” element of the increase which would have been imposed by the previous administration is not going to take place; at least not until the economy and jobs market seems to be recovering.
  • The tax free income tax Personal Allowance will … Continue Reading

Late, late tax planning

The 2009 Pre-Budget Report in December signalled a significant number of tax increases in the UK designed to make up the significant Budget deficit following the banking crisis. For many or our clients there will be a significant impact on their finances.-Income tax rates to rise and personal allowances to reduce for wealthier clients. -Future changes to rates applicable for dividends, trusts and NICs. -New 50% income tax band. There are further complicated rules for pension relief restriction and the end of well-established tax breaks for furnished holiday lettings (currently enjoying business tax advantages). There … Continue Reading

Scary tax planning in a changing world

I cannot remember a time when the tax regime in Britain was in a position of such flux. As we know the cost of the banking crisis and the recession has cost the government, or at least UK plc dearly. There is a huge deficit to be made up, exacerbated by the futile policy of reducing VAT from 17.5% to 15% for thirteen months. There is talk that after the election whoever is in power will have to raise VAT to 20%. There is not much we can do to mitigate this in advance, and from the Government’s point of … Continue Reading