Following on from yesterday’s budget, here is a link to our guide to the various announcements. Thankfully, nothing on pensions or CGT yet.
As always, please contact us if you have any questions.
Following on from yesterday’s budget, here is a link to our guide to the various announcements. Thankfully, nothing on pensions or CGT yet.
As always, please contact us if you have any questions.
Here are the notes relating to the Autumn budget together with the tax rates guidance.
Guide to tax rates and allowances autumn 2017
As usual, please contact us with any queries you might have.
Currently CGT is charged at 18% for individuals who are basic rate taxpayers, and 28% to the extent that an individual is a higher rate taxpayer or the gain exceeds the unused part of the individual’s basic rate band.
These rates will be reduced to 10% for basic rate taxpayers and 20% for higher rate taxpayers for gains accruing on or after 6 April 2016.
There will be an additional 8% surcharge on gains arising from ‘ carried interest’ or from residential property where private residence relief is not available.
Where individuals are considering the disposal of assets, it may be advisable to defer the disposal until 6 April 2016.
Download our handy guide to the budget and the separate tax rates summary here:
From 2015/16 the starting rate for savings income is reduced to 0% and the savings rate band is increased to £5,000.
This means that where a person’s taxable non-savings income is not more than £5,000, it will be possible to receive a significant amount of savings income tax-free (and to reclaim any tax suffered at source).
The personal allowance for 2015/16 is to increase to £10,500.
This means that a person can receive savings income of up to £15,500 in 2015/16 before paying any tax on that income. This is in addition to any tax-free savings income derived from NISAs, etc.
To ensure that the opportunity to benefit from tax-free savings income is not wasted, it is beneficial to plan ahead. Couples should review their affairs to ensure that best possible use is made of the savings rate.
Contact us if you wish to discuss this further.