October 2018 Newsletter Cylchlythyr Misol October 2018
The Budget is on 29 October. A full review will be sent on the evening of the Budget. Potential areas for tax rises include:
- Loss of higher rate pension relief / a cut in the annual allowance. If you are contemplating pension contributions, make them pre-budget.
- Further tax / National Insurance for company directors paying themselves mainly in dividends.
- More taxes on second homes / buy to let properties/Air B and B income.
- An Amazon / digital tax or a review of these taxes.
- More self employed / contractors may have tax deducted @ source.
Buy to Let Properties
Some landlords are considering selling their buy to let properties when tenancies end. Please contact me if you want a review of your Capital Gains tax liability and to see if there are opportunities for tax planning.
Scam threatening telephone calls allegedly from HMRC have caused much anxiety. Please warn elderly relatives / friends that if they receive a call that it is a scam and they should put the phone down.
HMRC guidance on tax enquiries / record keeping states : “Where tax has been lost because of careless behaviour we can make an assessment within 6 years of the end of the relevant tax period.” Consequently records prior to 6 April 2012 can be destroyed. Happy shredding!
I believe there is a new Inheritance Tax allowance for home-owners. How does it work ?
Since 6 April 2017 there is an additional allowance on top of the £325,000 per person, £650,000 per married couple called the Residence Nil Rate Band. It is £125,000 per person, £250,000 per married couple potentially increasing the tax free allowance to £900,000. It mainly applies where property is left directly to children / grandchildren.
If you wish to contact me in complete confidence my details are:
www.huwrobertsaccountant.com 07967 976854