News Articles: Personal Tax

CentreForum, the dominant Lib Dem think tank, have called for the taxing of pension cash lump sums taken upon retirement.  The proposed move targets those pension pots that fall into the higher tax rate of £42,475. The paper suggests that … Continue reading →

  The ‘IR35’ rules aim to collect income tax and National Insurance contributions on the earnings from those who carry out work through a limited company. The test of whether the rules apply is if the individual was working directly … Continue reading →

Did you watch the final of ‘The Apprentice’ – the BBC television programme where Lord Alan Sugar looks for a budding entrepreneur – last Sunday? If you did, you probably saw the look of amazement on the face of finalist … Continue reading →

We recently mentioned that the exemption for days spent in the UK for ‘exceptional circumstances’ when determining UK residence status does not apply if the individual is in this country for more than 183 days (see ‘Determining Days … as … Continue reading →

In comparison with the news that UK taxpayers may be paying £13.5bn of tax unnecessarily over the next year, HM Revenue & Customs may be more interested in those who have underpaid their tax and National Insurance liabilities. The past … Continue reading →

As previously reported, a tougher HMRC penalty regime applies. It was reported recently that a taxpayer claimed a tax overpayment of £3,000. HMRC calculated that the correct overpayment was £1,000 and then imposed a penalty of £1,400 for the error. … Continue reading →

Anti Avoidance The Government will be taking action to prevent attempts to avoid tax and National Insurance contributions through the use of Employee Benefit Trusts and other arrangements to disguise payments of remuneration and intends to introduce anti-avoidance legislation to … Continue reading →

As the tax year end approaches, individuals with stocks and shares should consider either using the CGT annual exemption (£10,100) or in view of the economic downturn, review their portfolio to see whether it is appropriate to crystallise a capital … Continue reading →

The maximum amount that can be invested in a tax-free Individual Savings Account for 2009/10 is £7,200 (£10,200 if over 50 in the tax year). This allowance must be fully utilised by 5th April 2010. Up to half the full … Continue reading →

Non-resident individuals should take professional advice regarding their residency status following recent case law. In particular the number of days in the UK is not in isolation a deciding factor as to residency status and increasingly HMRC are looking at … Continue reading →