UK Tax Facts. The Expatriate Financial Guide to the UK

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "UK Tax Facts. The Expatriate Financial Guide to the UK"

Transcription

1 The Expatriate Financial Guide to the UK UK Tax Facts Introduction Tax Year Assessment Basis Taxation in the UK is mostly at a national level with property taxes (Council Tax and Business Rates) being raised by local authorities at a regional level. The national UK tax system is administered by Her Majesty s Revenue & Customs (HMRC). 6 April to 5 April. Individuals who are UK resident, ordinarily UK resident and domiciled in the UK are taxed on their worldwide income and capital gains. The UK requires taxpayers to file a tax return and operates a self-assessment regime. Individuals with simple tax affairs, for example those who are only in receipt of employment and savings income, are not usually required to file a return. Married couples are treated separately for taxation purposes and are responsible for completing their own tax returns. For employed persons, tax is mainly withheld at source through the pay as you earn system (PAYE). Self-employed persons are required to complete a tax return and tax is generally paid half in advance and half in arrears on 31 January and 31 July. With the UK government focused on increasing tax revenues from many forms of tax evasion and tax avoidance, a new General Anti Abuse Rule (GAAR) came into effect on 17 July 2013 for tax arrangements arising on or after that date, with the objective of counteracting tax advantages arising from tax arrangements which are abusive. Changes to the anti-avoidance legislation affecting the taxation of gains and income arising in offshore structures have also been introduced to ensure compatibility with EU law. Income Tax Individuals are subject to income tax on all their taxable income. Individuals benefit from tax free allowances, dependent upon their age and marital status. In addition, certain deductions are allowable against taxable income, for example pension contributions and charitable donations. Income of married couples is not aggregated, with each being taxed on an individual basis. An additional tax free allowance is available for couples and individual taxpayers over 65. A progressive tax scale is applied to bands of taxable income over the personal tax free allowance of 9440 (2013/14), rising to 10,000 in 2014/15 and then 10,500 in 2015/16, with income tax rates of 20%, 40% and 45% (2013/14 and ) applied to income from employment. The progressive tax scale is applied to three income bands, namely the basic rate band (up to 32,010 in 2013/14, 31,865 in 2014/15 and 31,785 in 2015/16), the higher rate band ( 32, ,000 in 2013/14, with the higher rate threshold rising by 1% rather than inflation in and to 41,865 and 42,285 respectively) and the additional rate band (over 150,000, ). Different rates may apply to other types of income (e.g. dividends, savings income and capital gains), as detailed below. From April 2010 the UK Chancellor introduced an additional tax rate on income over 150,000, and a sliding scale reduction by 1 for every 2 of income above the 100,000 limit in the basic personal allowance down to nil for those with adjusted net incomes over 100,000 also took effect. In 2013/14 and 2014/15 the additional rate is 45%, reduced from 50% previously. A cap on certain currently unlimited income tax reliefs that may be deducted from an individual s taxable income was introduced from 6 April 2013 for individuals with annual taxable incomes over 50,000. The cap is set at the greater of 50,000 or 25% of the individual s taxable income. The cap does not apply to charitable reliefs. From married couples and civil partners will be able to transfer 1,050 of their income tax personal allowance to their spouse or civil partner. Couples where neither partner is a higher or additional rate tax payer will be eligible to transfer. Taxation of Investment Income In general, investment income is taxable and is included with other income when calculating an individual s income tax liability. However, the rate of tax applied to investment income depends upon the type of income and into which tax band it falls. In determining which band investment income falls into, different types of income are layered with employment and other non-savings income being considered first, then non-dividend savings income and, finally, dividend income. Dividends are taxed at 10% in respect of the basic rate band, with 32.5% applicable to higher rate band dividend income and 37.5% applicable where dividend income represents the top slice of taxable income over 150,000 (2013/14 and ). UK company dividends are paid net of notional 10% tax with an attaching tax credit. The tax credit may be used to offset any tax due, but cannot be reclaimed by non-taxpayers. The starting rate for savings income tax will be 0% and the band to which it applies will be extended from 2,880 (2014/15) to 5,000 (2015/16). All other savings income is liable to income tax rates of 20%, 40% and 45% in respect of the three taxation bands ( ). Interest credited by UK banks and building societies is paid net of 20% withholding tax. Tax on Property Rental Income Rental income is charged to income tax, with tax being applied to the rental income received, less any allowable expenses incurred. In determining into which tax band rental income falls it is considered after employment income, but before savings income and dividends.

2 Wealth Taxes Capital gains tax There are no wealth taxes in the UK. Capital gains tax is only payable whenever a gain is realised over the annual exemption limit of 10,900 (2013/14), increasing annually to 11,000 (2014/15) and 11,100 (2015/16). The capital gains tax rates are 18% and 28% (to 2015-/16), with the tax rate applicable depending on the total amount of taxable income. The 28% rate applies when total taxable income and gains are above the upper limit of the basic rate band of 32,010 (2013/14; 31,865 in 2014/15). A special entrepreneurs relief rate of 10% is available to the owners of businesses in respect of gains made on the disposal of all or part of a business and on disposals of assets following the cessation of a business. The first 10 million (2014/15) of gains that qualify for relief are charged at a rate of 10%. Gains in excess of 10 million are charged at the normal 18% and 28% rates. An individual can make claims for relief on more than one occasion, up to a lifetime total of 10 million of gains qualifying for relief. Principal private residence relief is still available, but business use, periods of absence and rental of the property may affect this. A capital gains charge of 28% applies to the gain on disposal of UK residential properties worth more than 2 million by a non-resident, non-natural person or the disposal of shares or securities in a company holding such property by a non-resident person from April The scope of capital gains tax will be extended to the disposal of UK residential property by nonresidents from April 2015, with final rules published in Inheritance Tax Inheritance tax is a cumulative levy on the value of lifetime gifts and assets (including the principal residence) passing between owners on death. Cumulative transfers are taxed at 40% on death, although the first 325,000 (2014/15, frozen until 2017/18) is free from inheritance tax. From April 2012, a reduced inheritance tax rate of 36% was introduced where 10% or more of the net estate is left to charity. Since October 2007, UK domiciled and deemed domiciled spouses and civil partners have been able to transfer their unused nil-rate-band allowances, in effect doubling the amount that can be passed on tax free. Any part of the nil-rate band not used when the first spouse or civil partner died can be transferred to the individual s surviving spouse or civil partner for use on their death. This change was applied retrospectively for any living widow or widower. Lifetime gifts to individuals are generally included in the value of the estate on death for inheritance tax purposes, although they are generally subject to a decreasing tax charge if the donor survives for three years and will generally be exempt if the donor survives for seven years following the date of the gift. Special rules apply to lifetime and death transfers to or from trusts. Transfers between spouses and civil partners are generally exempt. Certain lifetime gifts are also exempt, up to 3,000 per annum. Other exemptions may apply, for example wedding gifts. In certain circumstances lifetime gifts may be subject to inheritance tax and/or capital gains tax. The transfer of value by a UK domiciled individual to their non-uk domiciled spouse/civil partner was increased to the prevailing nil-rate band (currently 325,000) from April 2013 and non-uk domiciled individuals given the option to elect to be treated as UK domiciled for IHT purposes only. Regional and Municipal Taxes Property Taxes There are no regional taxes in the UK. Council Tax on residential property and Business Rates on non-residential property are charged by the local authorities. Rates vary according to the region. Stamp Duty Stamp duty is charged in the UK on the execution of documents transferring property. In 2003 Stamp Duty on real property was replaced by the Stamp Duty Land Tax (SDLT). SDLT is not dependent upon documents being stamped, but is directly enforceable on an acquisition of land. The purchaser is liable to pay SDLT. The rate of SDLT varies between nil and 15%, depending upon the value of the property. Residential property valued at less than 125,000 (2014/15), or 150,000 in respect of non-residential property (where the annual rent is under 1,000), is taxable at the nil rate, with a 5% rate applying on properties valued at between 1,000,000 and 2,000,000. A 15% SDLT charge is made on the acquisition by non-natural persons of UK residential properties costing more than 2 million plus a progressive Annual Tax on Enveloped Dwellings of between 15, ,000 (2014/15) applies to non-natural persons who own UK residential property worth over 2 million. Value Added Tax The standard rate of VAT is 20%. VAT is generally added to the sale price of goods and services. Sales of some goods and services are outside the scope of VAT, or are taxed at a lower rate.

3 National Insurance Contributions In the UK, social security contributions are known as National Insurance Contributions (NICs). Employees are liable to pay NICs based upon their earnings through the PAYE system. Social security rates on successive bands of earnings for employees are 0% (up to 153 weekly earnings), 12% (between 154 and 805 weekly earnings) and an additional 2% (over 805 weekly earnings) (2013/14). Employers pay 13.8% on earnings above 153 per week ( ). Self employed individuals pay NICs either directly at a flat rate, or with their income tax payments based on profits. Unlike a number of other countries, NICs in the UK are not deductible from taxable income. Taxation of Expatriates Living in the UK The scope of UK taxes affecting an expatriate individual living and working in the UK depends upon the individual s residence and domicile status. Residence In April 2013 the UK government introduced a statutory residence test (SRT) intended to provide greater clarity and certainty to individuals when determining their residence status for tax purposes in the UK. The previous rules for determining tax residence depended to a large extent on cases decided by the courts, with many of these cases decided some time ago and not reflective of modern work or travel patterns. Under the new rules most individuals will be able to determine their residence status to a high degree of probability but the complexity of the rules mean that a significant minority will be unable to do so with certainty. The SRT replicates as far as possible the residency outcomes delivered by the previous rules. The test takes into consideration the days spent in the UK and connections to the UK and is structured into three parts: firstly, the automatic overseas test will determine if an individual is automatically non-resident secondly, the automatic UK test will determine if an individual is automatically resident thirdly, the sufficient ties test will determine the residency position if an individual meets neither the automatic overseas nor the automatic UK test. The sufficient ties test determines residency based on a combination of the amount of time spent in the UK with the number of ties a person has Automatic Overseas Test An individual is not resident for a tax year if they: were not UK resident in any of the previous three tax years and spends fewer than 46 days in the UK in the relevant year; or were UK resident in one or more of the previous three tax years and spends fewer than 16 days in the UK in the relevant tax year; or carry out full-time work abroad (which includes self-employed work). Automatic Residence Test An individual who does not meet the Automatic Overseas Test will be resident for a tax year if they: spend 183 days or more in the UK in the relevant year; or have a UK home; or work full-time in the UK (which includes self-employed work). Sufficient Ties Test If an individual's residence status has not been ascertained under either of the above tests, this third test, which considers both the number of days spent in the UK as well as an individual's UK ties, will be applied. The test is structured so that the more UK ties that a person has, the fewer days he can spend in the UK without becoming resident. Examples of ties are family, accommodation and work. The test has been designed so that it is more difficult to relinquish UK residence status than to acquire it in the first place. Therefore, there are separate tests for: arrivers - defined as individuals not resident in any of the three previous tax years; and leavers - defined as individuals resident in one or more of the three previous tax years. In addition to dealing with residence status, the SRT provides definitions of areas such as home and working full-time abroad and new anti-avoidance rules for people leaving the UK for less than five years. Implementation of the SRT also abolished the concept of ordinary residence for tax purposes, but overseas workday relief will be retained for non-uk domiciled individuals. Domicile Domicile is a concept of general law. An individual s domicile indicates the country which an individual considers to be their permanent home. Under UK law every individual has a country of domicile and this will impact upon their liability to certain taxes, such as inheritance tax. Domicile is different from residence and rarely changes. An individual usually acquires their father s domicile at birth and then retains this for life, unless they sever their ties with their original country of domicile and establish a permanent home in another country.

4 An expatriate working in the UK for a limited period, with no intention to settle in the UK, will generally be regarded as non- UK domiciled. An individual may, however, be deemed to be domiciled in the UK for inheritance tax purposes only if they are UK tax resident for 17 out of the last 20 tax years, including the year of assessment in which the taxable event takes place. Taxation Basis The taxation basis applicable to the different types of income and gains depends upon the individual s residence and domicile status. An individual who is UK resident and UK domiciled will be taxed on worldwide income and gains, as well as inheritance tax being based upon the value of their worldwide assets. The previous concept of ordinary residence was abolished in April 2013 in order to simplify the residence rules. In particular, the withdrawal of ordinary residence status means that: in future the remittance basis will be available only for non-uk domiciles; and the transfer of assets abroad rules may become relevant for individuals who are not affected by these provisions at present because they are resident but not ordinarily resident. The tax treatment of the employment income and investment gains of an expatriate non-uk domiciled person living and working in the UK will depend upon their UK tax residence status and whether the income is generated by UK or non-uk employment duties. The UK Finance Act 2008 introduced changes to the taxation of non-domiciles living in the UK. These changes mean that non-domiciles resident in the UK for fewer than seven out of the previous nine tax years can continue to access the remittance basis of taxation, only paying UK income or capital gains tax when they remit overseas income or investment gains to the UK, but they have no personal allowances for income tax and no annual exempt amount for capital gains tax, unless their unremitted foreign income or gains are less than 2,000. In addition, any non-uk domiciled individuals who have been UK resident for seven of the past nine years will have two choices: become liable to UK tax on all overseas earnings, irrespective of whether this income is remitted to the UK; or continue to be taxed on the remittance basis and pay an annual flat rate tax charge of 30,000 (in addition to UK tax due on remitted income) Non-domiciled individuals who have been UK resident for 12 or more years who wish to continue to be taxed on the remittance basis must pay a higher annual flat rate tax charge of 50,000 (2014/15). Non-UK domicile expatriates living in the UK are taxed upon all of their UK sourced income. Non-UK sourced income and capital gains will be subject to the rules as detailed above and will become liable to UK taxation, subject to any relief which may be due in respect of foreign tax paid. Split year treatment (which allows an individual to be treated as non-uk resident for part of the tax year) will be restricted, broadly, to where an individual: starts to work full-time overseas (or accompanies a spouse or partner who is working full-time overseas); or leaves the UK to live abroad, moving his home there within six months of his departure and not returning to the UK for more than 15 days for the rest of the relevant tax year; or comes to the UK to live here and his only home is in the UK, or comes to work full-time in the UK; or acquires a home in the UK and continues to be resident in the UK in the next tax year. The application of overseas workday relief was extended from April Previously, overseas workday relief allowed individuals who are resident but not ordinarily resident in the UK and who carry out employment duties partly in the UK and partly overseas, to benefit from the remittance basis on foreign earnings. This relief was placed on a statutory footing in April 2013 for non-uk domiciled individuals arriving in the UK who have been non-uk resident for the previous three tax years. This new relief will apply for a fixed period of up to the first three years of residence, but only applies to individuals coming to the UK from 6 April Those who are already here will be subject to existing treatment. An expatriate s liability to UK inheritance tax depends on their domicile. An individual who is UK domiciled will be liable to inheritance tax on their worldwide assets, whilst a non-uk domicile expatriate living in the UK will only be liable to UK inheritance tax on their UK situated assets. The UK has negotiated over 100 comprehensive double taxation agreements. However, only around 10 of these cover inheritance tax. An expatriate s liability to pay National Insurance Contributions (social security) generally depends upon the expatriate s country of origin and length of stay in the UK. The countries of origin are split into the following groups: EEA/EU generally an expatriate may continue to pay social security contributions in their home state if they only expect to stay in the UK for less than 12 months. Under certain circumstances this period may be extended up to a maximum of five years. Countries with a social security treaty with the UK the situation will be dependent upon the terms of the treaty, but in general an expatriate will not pay UK National Insurance Contributions if they are continuing to contribute in their home country.

5 Expatriate Financial Planning The 2008 UK Budget changes have had a significant impact on the tax position of long-term non-domiciled UK residents and have put the regime on a more equal footing with the UK resident regime from a financial planning perspective. Where nondomiciled individuals have been UK resident for seven out of the preceding nine years they are now automatically subject to tax on their worldwide income and capital gains regardless of whether this income is remitted to the UK unless the total income is less than 2,000. A non-domiciled individual may still opt to be taxed under the remittance basis by paying an annual tax charge of 30,000 if resident in the UK for seven out of the last nine years, or 50,000 per annum if UK resident for 12 years, but will sacrifice their UK income tax personal allowance and capital gains tax relief if they choose to do this. In addition, the introduction of the 45% (2013/14 and 2014/15) additional rate of income tax on income over 150,000, the reduction in basic personal allowances applicable to income and the higher rate of tax on dividends have had a significant impact on the earnings of high net worth expatriate individuals choosing to reside in the UK. Now, more than ever, an expatriate should take care to plan when they move to the UK and also consider carefully the number of days they spend in the UK in a tax year. Tax advice should be sought during the planning stage. If you are an expatriate currently living in the UK, you should review your finances with a suitably qualified financial adviser who is either authorised directly by the UK regulator or is based in another EU market and recognised by the UK regulator following prior notification by the adviser under the Insurance Mediation Directive. If you are planning a move to the UK, you should review your finances with a suitably qualified and experienced financial adviser and/or tax adviser who is familiar with UK tax matters before making the move. You may wish to consider cross-border investments, including cross-border life products, in order to manage your tax liability and/or control when tax charges are made, as well as considering options available to you for estate planning (inheritance tax). Expatriate Financial Planning Cross-border Bond Benefits Cross-border bonds can play an important role in helping UK non-domiciles to manage their investments whilst minimising their UK taxation. Another important consideration for a non-domicile in that any assets they own in the UK are subject to IHT on death. Helpfully a cross-border bond is not a UK-situated asset. In addition to this important IHT planning aspect, a key consideration for your non-domiciled clients choosing the remittance basis is that they have no income tax or capital gains tax allowances available against which to offset any UK tax liabilities. A cross-border bond investment does not create any liability to UK income tax or capital gains tax, provided that no withdrawals are made in excess of the cumulative 5% per year tax deferred allowance, and provided that no other chargeable events occur, such as the death of the last life assured or changes made to the lives assured. Non-domiciles can also use the 5% a year tax deferred withdrawal facility to remit an income to the UK without triggering an immediate tax charge. It is important to note that for non-domiciles in the UK to benefit from the 5% deferred tax withdrawal facility, the funds paid into the bond must be regarded as clean capital by HMRC. Clean capital is defined as the taxed assets and amounts that an individual held on account before taking up residence in the UK for the first time and subsequent foreign income or foreign gains that were taxed when they arose. The clean capital requirement applies to both the original premium and any subsequent additional premiums (if any) paid into the bond. The funds used as premiums will retain their original characteristics even though they are held within the bond. If a 5% withdrawal is made from a bond where the premium was paid using the non-domicile s foreign income or foreign gains that were untaxed when they arose (i.e. not clean capital) when the non-domicile was a remittance basis user in that year, then any and all of the 5% withdrawal will be considered a chargeable event /taxable remittance if the money is brought to, or received or used in, the UK. If a non-uk domicile chooses not to use the remittance basis of taxation, they can effectively be regarded as a normal UK resident for tax purposes and access a similar range of cross-border bond benefits which can help to mitigate income tax, capital gains tax and inheritance tax. Creating a chargeable event for a cross-border bond is not advisable for foreign nationals residing in the UK. Whilst the specific benefits of a cross-border life product will depend upon an individual s circumstances, they do offer a number of potential benefits to expatriates living in the UK, as outlined in the table below. Tax-efficient Investments Investments in a cross-border life product grow virtually free of tax throughout the time the product is held, suffering only a small amount of irrecoverable withholding tax on investment funds located in certain countries Cross-border life products can therefore be useful in managing tax liabilities and controlling when tax charges are made, whether an individual lives in the UK or moves to another country, allowing them, in general, to manage when they take benefits and potentially to defer the benefits to a period that may be more advantageous from a taxation perspective. Please note that tax may need to be paid on an arising basis in the individual s country of residence if this is not the UK. A cross-border bond provides a particularly effective way of housing and switching multiple collective investments in a tax efficient manner as this shelters switches in investments from capital gains tax charges, while switches between directly held collectively investments will suffer a charge to tax on an arising basis.

6 Expatriate Financial Planning Cross-border Bond Benefits (cont.) Generating Income Non-UK Situs Assets Cross-border life products generally qualify for the 5% per annum tax-deferred withdrawal allowance in the UK. For expatriate electing for the remittance basis of taxation, where funds are withdrawn from the policy they will retain the character of the funds paid into the policy. If a policy is purchased with pure capital (i.e. not made up of foreign income or gains), the withdrawal can be remitted to the UK without tax implications. Expatriates who are resident in the UK and elect for the remittance basis of taxation may be advised to use cross-border investments, including cross-border life products, rather than domestic investments in the UK or in their country of residence, to keep their assets outside of the UK to avoid creating investment income which may have UK income or capital gains tax liabilities. Cross-border life products can also be a useful tool for expatriates who do not elect for the remittance basis of taxation as they can be used to shelter worldwide assets to avoid generating an annual income tax or capital gains tax liability. Estate Planning Expatriates resident in the UK are liable to UK inheritance tax on their UK situs assets, and may wish to consider estate planning options, such as a cross-border bond held in an appropriate trust or fiduciary arrangement, to ensure that potential charges to UK inheritance tax for your beneficiaries are minimised. Investment Choice Designed for Expatriates Cross-border bonds generally feature a wide range of offshore funds specifically tailored to fit with expatriate clients preferences and attitude to risk. They also offer access to international and specialist fund managers which may not be available in domestic fund and insurance markets. Specialist investment advisers and discretionary asset managers can be appointed to manage the investments held in a bond. Most companies offering cross-border life products are subsidiaries of global financial services companies specialising in dealing with expatriates on a multi-lingual, multicurrency basis. Cross-border products can offer significant benefits over and above what might be available in the domestic market in countries including the UK, particularly in relation to product features, investment flexibility and investment choice. A cross-border product has the flexibility to adapt to changes in individual circumstances, including changes to residency status such as moving away from the UK. The cross-border life companies are regulated in first class home jurisdictions which benefit from strong regulatory controls. Your financial adviser can help you ensure that you maximise the financial benefits of your expatriate status and help you to assess if cross-border life products are right for your individual circumstances. Further information about cross-border life products and their use in financial planning can be found on AILO s website at This document has been prepared on behalf of the members of the Association of International Life Offices ( AILO ) and relies on information and technical analysis provided by third party professionally qualified tax advisers. Whilst AILO has used its best endeavours in selecting its advisers to ensure the accuracy of the information contained in this document, AILO cannot be held responsible for any errors and omissions. This document has been prepared for general information purposes only. The information contained in this document is a summary of the law relating to taxation that is generally applicable in the UK and is intended for guidance only. The information contained in this document reflects the law as at March Tax legislation is complex and subject to frequent change. This document cannot be relied upon as a specific analysis of the current law as it applies to each individual. Individuals should seek detailed tax advice from a suitably qualified professional adviser in their country of origin as well as eventual residence before making any decision in relation to their tax planning. The information contained in this document does not, and is not intended to, amount to investment advice and anyone reading it should consult their professional adviser before making an investment into any investment product of a type mentioned in this document. March 2014

Introduction. The Expatriate Financial Guide for UK Expatriates Working Overseas

Introduction. The Expatriate Financial Guide for UK Expatriates Working Overseas Introduction The Expatriate Financial Guide for UK Expatriates Working Overseas An individual who is considering a move from the UK in order to work overseas will need to take into account a number of

More information

German Tax Facts. The Expatriate Financial Guide to Germany

German Tax Facts. The Expatriate Financial Guide to Germany The Expatriate Financial Guide to Germany German Tax Facts Introduction Tax Year Assessment Basis Income Tax Taxation in Germany occurs at a national and municipal level. The Ministry of Finance controls

More information

Spanish Tax Facts. The Expatriate Financial Guide to Spain

Spanish Tax Facts. The Expatriate Financial Guide to Spain The Expatriate Financial Guide to Spain Spanish Tax Facts Introduction Tax Year Assessment Basis Taxation in Spain occurs at a national level and at a regional ( Autonomous Community ) or municipal level.

More information

31 October (paper filing) 31 January (Electronic Filing)

31 October (paper filing) 31 January (Electronic Filing) Worldwide personal tax guide 2013 2014 United Kingdom Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible HM Revenue and Customs (HMRC) www.hmrc.gov.uk 6 April

More information

The Expatriate Financial Guide to

The Expatriate Financial Guide to The Expatriate Financial Guide to Australian Tax Facts Australia Introduction Tax Year Assessment Basis Income Tax Taxation in Australia is mostly at a national/federal level with property taxes (council

More information

Tax guide For individuals coming to the UK

Tax guide For individuals coming to the UK Tax guide For individuals coming to the UK Contents Introduction..01 UK residency rules.02 Domicile.. 04 UK taxation of individuals.. 05 Remittance basis of taxation...09 Pre-immigration planning for non-uk

More information

Life Assurance Policies

Life Assurance Policies clarityresearch Life Assurance Policies Summary 1. Some life assurance policies are not taken out as a means of purely providing life insurance (for this subject, please see the Research Notes in the Protection

More information

Residence status for a particular tax year (the year from 6 April to 5 April) is determined in accordance with a number of tests.

Residence status for a particular tax year (the year from 6 April to 5 April) is determined in accordance with a number of tests. Introduction The liability of individuals to UK tax is affected by their residence and domicile status. Different combinations of residence and domicile affect how the various types of income are taxed

More information

As for income tax, the tax year runs from 6 April to the following 5 April.

As for income tax, the tax year runs from 6 April to the following 5 April. Introduction Capital gains tax (CGT) is a tax on gains arising from disposals of assets. For several years after CGT was first introduced in 1965, if a person bought an asset for X and later sold it for

More information

Tax-Efficient Investment in UK Property for Non-Residents: A Guide

Tax-Efficient Investment in UK Property for Non-Residents: A Guide Tax-Efficient Investment in UK Property for Non-Residents: A Guide UK real estate, particularly prime property in London, has always attracted significant international investment. Investment in UK real

More information

Tax factsheet Single premium life insurance bonds

Tax factsheet Single premium life insurance bonds Tax factsheet Single premium life insurance bonds The rules relating to the taxation of single premium life insurance bonds are complex. This factsheet outlines the tax treatment where a policy is held

More information

Capital gains tax for non-residents disposing of UK residential property: Final Rules

Capital gains tax for non-residents disposing of UK residential property: Final Rules Capital gains tax for non-residents disposing of UK residential property: Final Rules Legal Alert May 2015 The United Kingdom (UK) Finance Act 2015 received Royal Assent on 26 March 2015. This included

More information

Worldwide personal tax guide 2013 2014. Japan. Local information. 2013 National Income Tax Rates Taxable Income Band National Income Tax Rates

Worldwide personal tax guide 2013 2014. Japan. Local information. 2013 National Income Tax Rates Taxable Income Band National Income Tax Rates Worldwide personal tax guide 2013 2014 Japan Local information Tax Authority Ministry of Finance Website www.mof.go.jp Tax Year 1 January to 31 December Tax Return due date 15 March Is joint filing possible

More information

Income in the Netherlands is categorised into boxes. The above table relates to Box 1 income.

Income in the Netherlands is categorised into boxes. The above table relates to Box 1 income. Worldwide personal tax guide 2013 2014 The Netherlands Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible Belastingdienst www.belastingdienst.nl

More information

Sweeter tax planning ideas

Sweeter tax planning ideas Sweeter tax planning ideas Helping to ensure you have made full use of the reliefs and allowances available www.bakertilly.co.uk Contents Sweeter tax planning ideas To ensure that you optimise your tax

More information

Taxation. General. 1. Taxation UK. Mondi plc Ordinary Shareholders

Taxation. General. 1. Taxation UK. Mondi plc Ordinary Shareholders Taxation The statements set out below are intended only as a general guide to United Kingdom ( UK ) and South Africa ( SA ) current law and practice and apply only to certain categories of person who are

More information

Professional Level Options Module, Paper P6 (UK) 1 Jodie

Professional Level Options Module, Paper P6 (UK) 1 Jodie Answers Professional Level Options Module, Paper P6 (UK) Advanced Taxation (United Kingdom) June 2015 Answers 1 Jodie Paragraphs for inclusion in a letter from manager Client Jodie Prepared by Tax senior

More information

8. Taxation. There are no local income taxes in the UK. The only local taxation on businesses is a property-based levy known as the business rate.

8. Taxation. There are no local income taxes in the UK. The only local taxation on businesses is a property-based levy known as the business rate. 8. Taxation 8.1 Overview of UK taxation The UK corporation tax rate at a maximum of 28%, recently decreased from 30%, is one of the lowest of the major economies in Europe. Value Added Tax (VAT) at 17.5%

More information

Tax Guide for Individuals Moving to the UK

Tax Guide for Individuals Moving to the UK Tax administration and allowances The UK taxing authority is known as Her Majesty s Revenue and Customs (or HMRC for short) and the tax year runs from 6 April to the following 5 April. There is no system

More information

Inheritance tax: spouses and civil partners domiciled overseas

Inheritance tax: spouses and civil partners domiciled overseas Inheritance tax: spouses and civil partners domiciled overseas Who is likely to be affected? Individuals who are domiciled outside the UK and who have a UK-domiciled spouse or civil partner and UK-domiciled

More information

Onshore Bond for Wrap Key Features

Onshore Bond for Wrap Key Features Onshore Bond for Wrap Key Features This is an important document. Please read it and keep it along with your personal illustration for future reference. The Financial Conduct Authority is a financial services

More information

KEY GUIDE. Living abroad the new tax rules

KEY GUIDE. Living abroad the new tax rules KEY GUIDE Living abroad the new tax rules Planning to leave the UK While the thought of going abroad to work or retire may be exciting, the months before departure may be stressful. Finding somewhere to

More information

Lifetime Gifts The Principal Tax Considerations BRIEFING

Lifetime Gifts The Principal Tax Considerations BRIEFING Lifetime Gifts The Principal Tax Considerations BRIEFING Why give at all? Assuming that the older generation can afford it, the children (or indeed grandchildren) will always welcome some financial help,

More information

GUIDE FOR INDIVIDUALS OR EMPLOYEES COMING TO WORK IN IRELAND

GUIDE FOR INDIVIDUALS OR EMPLOYEES COMING TO WORK IN IRELAND GUIDE FOR INDIVIDUALS OR EMPLOYEES COMING TO WORK IN IRELAND OSK East point plaza East point Dublin 3 Ireland www.osk.ie Contents 1. Residency rules explained 3 2. How do residence, ordinary residence

More information

A Guide to the Discounted Gift Trust

A Guide to the Discounted Gift Trust A Guide to the Discounted Gift Trust > Contents Inheritance tax planning 04 What can the Discounted Gift Trust do for you? 05 Choice of trusts and inheritance tax 06 How does the trust work? 07 Income

More information

Cross-Border Investment Bonds

Cross-Border Investment Bonds Summary for UK resident clients A guide to Cross-Border Investment Bonds An investment product designed for everyone... This guide explains some important generic facts about cross-border investment bonds

More information

UK Residential Property Ownership Update. Accounting & Tax. trusted to deliver...

UK Residential Property Ownership Update. Accounting & Tax. trusted to deliver... UK Residential Property Ownership Update Accounting & Tax trusted to deliver... UK Residential Property Ownership Update The below provides a general overview of the key considerations for individual,

More information

INTRODUCTION TO CHARGEABLE EVENT TAXATION.

INTRODUCTION TO CHARGEABLE EVENT TAXATION. TAX & ESTATE PLANNING PROFILE INTRODUCTION TO CHARGEABLE EVENT TAXATION. Gains arising on a non-qualifying single premium whole of life assurance policy such as an Investment Bond issued by either a UK

More information

Moving to Ireland. Overview of the Irish Income Tax Implications

Moving to Ireland. Overview of the Irish Income Tax Implications Moving to Ireland Overview of the Irish Income Tax Implications Table of Contents Page Introduction 3 1. Fundamental Concepts Residence, Ordinary Residence and Domicile 3 1.1 Irish Resident 3 1.2 Ordinarily

More information

Receita Federal do Brasil (RFB) www.receita.fazenda.gov.br 1 January to 31 December Last working day of April following end of tax year

Receita Federal do Brasil (RFB) www.receita.fazenda.gov.br 1 January to 31 December Last working day of April following end of tax year Worldwide personal tax guide 2013 2014 Brazil Local Information Tax Authority Receita Federal do Brasil (RFB) Website www.receita.fazenda.gov.br Tax Year 1 January to 31 December Tax Return due date: Last

More information

An investment product designed for. everyone. A guide to the suitability of offshore bonds for UK professional advisers

An investment product designed for. everyone. A guide to the suitability of offshore bonds for UK professional advisers An investment product designed for everyone A guide to the suitability of offshore bonds for UK professional advisers 2 Why you should read this guide Tax is the key driver for most offshore life bond

More information

Investing in Northern Ireland

Investing in Northern Ireland Investing in Northern Ireland Key Tax Issues August 2012 kpmg.ie 1 1 Contents 1 Introduction 3 2 Corporation tax 4 3 Individual taxation 10 4 Other taxes 12 Appendix 1 - UK Tax Residence 13 2 1. Introduction

More information

My client s a US citizen resident in the UK, what do I need to know?

My client s a US citizen resident in the UK, what do I need to know? My client s a US citizen resident in the UK, what do I need to know? So if my client s estate is worth less than the Credit Amount, my client has no reason to worry? Unfortunately, it isn t that simple.

More information

Expatriation A comparison of tax issues in the US & UK in an increasingly mobile world

Expatriation A comparison of tax issues in the US & UK in an increasingly mobile world London New York Geneva Expatriation A comparison of tax issues in the US & UK in an increasingly mobile world Greenwich Hong Kong Richard Cassell Penelope Williams Milan New Haven UK Perspective What are

More information

Year End Tax Planner 2015-16

Year End Tax Planner 2015-16 Disclaimer This publication is intended to provide general information and guidance only and is not intended to provide advice to any specific person. You are recommended to seek competent professional

More information

International Tax information for customers Client Guide

International Tax information for customers Client Guide International Tax information for customers Client Guide Contents Please note AXA Wealth International is the brand used for the promotion of international investment products offered by AXA Isle of Man

More information

Year end tax planning checklist 2015/2016

Year end tax planning checklist 2015/2016 Year end tax planning checklist 2015/2016 At Heartwood we make every effort to advise clients on sensible and appropriate ways to reduce their tax burden in a straight forward manner. To complement this

More information

Non-dom dilemmas and how offshore bonds can help. For advisers only. Not for use with customers.

Non-dom dilemmas and how offshore bonds can help. For advisers only. Not for use with customers. Non-dom dilemmas and how offshore bonds can help For advisers only. Not for use with customers. 2 Non-dom dilemmas and how offshore bonds can help Background The UK has long been considered a tax haven

More information

Tax Facts STRAIGHT TO THE POINT RATES AND ALLOWANCES GUIDE 2016 /

Tax Facts STRAIGHT TO THE POINT RATES AND ALLOWANCES GUIDE 2016 / Tax Facts RATES AND ALLOWANCES GUIDE 2016 / 2017 STRAIGHT TO THE POINT www.hazlewoods.co.uk The data in this card is based on releases from HM Treasury and HMRC. INCOME TAX Personal allowances those born

More information

CYPRUS TAX CONSIDERATIONS

CYPRUS TAX CONSIDERATIONS TAXATION The following summary of material Cyprus, US federal income and United Kingdom tax consequences of ownership of the GDRs is based upon laws, regulations, decrees, rulings, income tax conventions

More information

Your guide to taxation in India

Your guide to taxation in India Sharing our experience Your guide to taxation in India www.fpinternational.com The tax treatment of our products if you return to India Whilst tax planning might be an important part of your overall financial

More information

A 5.5% solidarity surcharge is imposed on the income tax liability of all taxpayers.

A 5.5% solidarity surcharge is imposed on the income tax liability of all taxpayers. Worldwide personal tax guide 2013 2014 Germany Local information Tax Authority Website Tax Year Tax Return due date 31 May 2013 Is joint filing possible Are tax return extensions possible 2013 income tax

More information

The purchase of the Aquapower business corporation tax liabilities NewCo Ltd purchases the business Epon Ltd Wahzah Ltd Yoko Ltd NewCo Ltd

The purchase of the Aquapower business corporation tax liabilities NewCo Ltd purchases the business Epon Ltd Wahzah Ltd Yoko Ltd NewCo Ltd Answers Professional Level Options Module, Paper P6 (UK) Advanced Taxation (United Kingdom) June 013 Answers 1 Epon Ltd group To The files From Tax senior Date 7 June 013 Subject The purchase of the Aquapower

More information

PRIVATE CLIENT BRIEFING:

PRIVATE CLIENT BRIEFING: PRIVATE CLIENT BRIEFING: I M A US CITIZEN RESIDENT IN THE UK, WHAT DO I NEED TO KNOW? JANUARY 2013 Almost uniquely, the US taxes its citizens (and Green Card holders) on a worldwide basis regardless of

More information

Residential Property in the UK A Guide to UK Tax on UK Residential Property

Residential Property in the UK A Guide to UK Tax on UK Residential Property Residential Property in the UK A Guide to UK Tax on UK Residential Property When buying or selling a residential property, you should seek tax advice as early as possible. The main UK taxes to consider

More information

Corporation tax ( 329,080 x 26%) 85,561

Corporation tax ( 329,080 x 26%) 85,561 Answers Professional Level Options Module, Paper P6 (UK) Advanced Taxation (United Kingdom) December 2012 Answers 1 Flame plc group (a) Report to the Group Finance Director of Flame plc (i) Flame plc sale

More information

TAX RATES AND ALLOWANCES 2014-2015

TAX RATES AND ALLOWANCES 2014-2015 TAX RATES AND ALLOWANCES 2014-2015 CONTENTS INCOME TAX RATES 2 INCOME TAX ALLOWANCES 3 PENSIONS 3 PERSONAL INVESTMENT INCENTIVES 4 BASIC STATE PENSION 4 NATIONAL INSURANCE CONTRIBUTIONS 5 CAR BENEFIT FOR

More information

Professional Level Options Module, Paper P6 (UK) 1 Kantar. Notes for meeting

Professional Level Options Module, Paper P6 (UK) 1 Kantar. Notes for meeting Answers Professional Level Options Module, Paper P6 (UK) Advanced Taxation (United Kingdom) December 201 Answers 1 Kantar Notes for meeting (a) (i) Inheritance tax Small gifts exemption The small gifts

More information

trust and corporate services in Gibraltar

trust and corporate services in Gibraltar Acquarius Trust Group trust and corporate services in Gibraltar Comprehensive Global Fiduciary Services.the total solution built around you the people the service the quality Acquarius Trust Group 1 OUR

More information

International Portfolio Bond for Wrap Key Features

International Portfolio Bond for Wrap Key Features International Portfolio Bond for Wrap Key Features This is an important document. Please read it and keep it along with the enclosed personal illustration for future reference. The Financial Conduct Authority

More information

2014/15. Year End. Tax Planning. With careful tax planning, it may be possible to mitigate taxes or make them much more manageable

2014/15. Year End. Tax Planning. With careful tax planning, it may be possible to mitigate taxes or make them much more manageable FINANCIAL GUIDE A GUIDE TO 2014/15 Year End Tax Planning With careful tax planning, it may be possible to mitigate taxes or make them much more manageable A GUIDE TO 2014/15 YEAR END TAX PLANNING With

More information

Financial Planning for UK Expatriates Living in Australia

Financial Planning for UK Expatriates Living in Australia Financial Planning for UK Expatriates Living in Australia WHITE PAPER SERIES The climate and lifestyle of Australia has long been irresistible to UK citizens. Of the six million migrants currently living

More information

KEY GUIDE. The taxation of investments

KEY GUIDE. The taxation of investments KEY GUIDE The taxation of investments Increasing complexity The taxation of investments has never been a simple matter. In recent years it has become more complex as successive governments have chosen

More information

Bringing your Business to the UK

Bringing your Business to the UK Bringing your Business to the UK This Guide is intended to give a general outline of some of the legal aspects of doing business in the UK. The Guide outlines the different business mediums available

More information

This chapter outlines the key issues that are peculiar to partnerships. There are five main types of partner in a conventional partnership:

This chapter outlines the key issues that are peculiar to partnerships. There are five main types of partner in a conventional partnership: Introduction A business partnership is a relationship between two or more persons who are in business together with a view to making a profit. Those persons may be individuals, companies or possibly even

More information

Residential Property in the UK A Guide to UK Tax on UK Residential Property

Residential Property in the UK A Guide to UK Tax on UK Residential Property Residential Property in the UK A Guide to UK Tax on UK Residential Property When buying or selling a residential property, you should seek tax advice as early as possible. The main UK taxes to consider

More information

Changes to Principal Private Residence relief

Changes to Principal Private Residence relief Changes to Principal Private Residence relief Principal Private Residence relief (PPR) from capital gains tax is to be restricted from April 2015 where a residence is located in a territory in which neither

More information

Residential Property Letting Tax Guide

Residential Property Letting Tax Guide Residential Property Letting Tax Guide www.haslers.com Property tax: a Haslers guide If you have invested in property to provide a home for yourself or a family member, or to let out on a small scale,

More information

2014/15. Year End. Tax Planning A GUIDE TO WITH CAREFUL TAX PLANNING, IT MAY BE POSSIBLE TO MITIGATE TAXES OR MAKE THEM MUCH MORE MANAGEABLE

2014/15. Year End. Tax Planning A GUIDE TO WITH CAREFUL TAX PLANNING, IT MAY BE POSSIBLE TO MITIGATE TAXES OR MAKE THEM MUCH MORE MANAGEABLE FINANCIAL GUIDE A GUIDE TO 2014/15 Year End Tax Planning WITH CAREFUL TAX PLANNING, IT MAY BE POSSIBLE TO MITIGATE TAXES OR MAKE THEM MUCH MORE MANAGEABLE Atkinson White Partnership Regency House, 51 Coniscliffe

More information

Art Estate Planning: advantages and barriers

Art Estate Planning: advantages and barriers Art Estate Planning: advantages and barriers Mr Alessandro Umberto Belluzzo Belluzzo & Partners LLP Managing Partner London, 26 November 2014 Individuals - UK Residence vs UK Domicile UK Residence UK Domicile

More information

International Bond Key features

International Bond Key features International Bond Key features This is an important document. Please read it and keep for future reference. Helping you decide This key features document contains important information about the main

More information

CHAPTER 21 OVERSEAS TRUSTS CGT AND IHT ISSUES

CHAPTER 21 OVERSEAS TRUSTS CGT AND IHT ISSUES CHAPTER 21 OVERSEAS TRUSTS CGT AND IHT ISSUES In this chapter you will learn about CGT and IHT on non-resident trusts including; Disposals of UK residential property; Capital gains exit charges; Capital

More information

Provinces and territories also impose income taxes on individuals in addition to federal taxes

Provinces and territories also impose income taxes on individuals in addition to federal taxes Worldwide personal tax guide 2013 2014 Canada Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible Canada Revenue Agency (CRA)

More information

Seafarer Tax and Investment

Seafarer Tax and Investment ANDREW OLIVER FINANCIAL MANAGEMENT Seafarer Tax and Investment The new statutory residence test OFFSHORE PLANNING Earlier this year HMRC introduced a new statutory residence test, which has been designed

More information

Tax-effective giving. made simple

Tax-effective giving. made simple Tax-effective giving made simple July 2015 1 Sayer Vincent LLP Chartered accountants and statutory auditors Invicta House 108 114 Golden Lane London EC1Y 0TL Offices in London, Bristol and Birmingham 020

More information

STRUCTURING UK RESIDENTIAL PROPERTY

STRUCTURING UK RESIDENTIAL PROPERTY STRUCTURING UK RESIDENTIAL PROPERTY NICHOLAS JACOB WRAGGE LAWRENCE GRAHAM & CO LLP London, Paris, Munich, Monaco, Moscow, Dubai, Singapore, Guangzhou UK REAL ESTATE - HISTORICAL POSITION Reason for buying

More information

Client Update George Osborne s Chocolate Box. UK Budget 2016.

Client Update George Osborne s Chocolate Box. UK Budget 2016. 1 Client Update George Osborne s Chocolate Box. UK Budget 2016. LONDON Richard Ward rward@debevoise.com Ceinwen Rees crees@debevoise.com Paul Eastham peastham@debevoise.com Ellie Mends emends@debevoise.com

More information

Income tax for individuals is computed on a monthly basis by applying the above progressive tax rates to employment income.

Income tax for individuals is computed on a monthly basis by applying the above progressive tax rates to employment income. Worldwide personal tax guide 2013 2014 China Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible State Administration of Taxation

More information

Tax and Immigration Guidance for Individuals Coming to the UK

Tax and Immigration Guidance for Individuals Coming to the UK Tax and Immigration Guidance for Individuals Coming to the UK JEFFCOTE DONNISON LLP Tax Advisors Accountants Business Consultants Tel +44 (0)20 7399 3100 Fax +44 (0)20 7408 2435 info@jeffcotedonnison.co.uk

More information

Information. Outline of Capital Gains Tax. Introduction. Scope of CGT. Chargeable assets. Basic principles

Information. Outline of Capital Gains Tax. Introduction. Scope of CGT. Chargeable assets. Basic principles Information Introduction Capital Gains Tax (CGT) was introduced in 1965 to supplement the Income Tax regime. The intention is to tax the profit made on the disposal of a capital asset in cases where an

More information

Country Tax Guide.

Country Tax Guide. Country Tax Guide www.bakertillyinternational.com Country Tax Guide Germany Corporate Income Taxes Resident companies, defined as companies which are legally constituted in Germany, or which are legally

More information

Taxable income band Property Interest Dividends

Taxable income band Property Interest Dividends THE TAXATION OF INVESTMENTS The taxation of investments has never been a simple matter. In recent years it has become more complex as successive governments have chosen to tax different sources of investment

More information

A Comprehensive Guide to Capital Gains Tax

A Comprehensive Guide to Capital Gains Tax A Comprehensive Guide to Capital Gains Tax Easy to read Expanding the world of opportunity The Red Sky Partnership Red Sky House Fairclough Hall Halls Green Hertfordshire SG4 7DP T: 01462 791079 E: info@redskypartnership.co.uk

More information

Tax Tables 2014/15. Rates 13/14 14/15 Starting rate of 10% on savings income up

Tax Tables 2014/15. Rates 13/14 14/15 Starting rate of 10% on savings income up Tax Tables 2014/15 INCOME TAX Rates 13/14 14/15 Starting rate of 10% on savings income up 2,790 2,880 to* Basic rate at 20% on income up to 32,010 31,865 Maximum tax at basic rate 6,402 6,373 Higher rate

More information

Buying and selling an unincorporated business

Buying and selling an unincorporated business Introduction This section covers the main tax issues that arise when buying or selling a business owned by a sole trader, a partnership or a company. The tax consequences differ, depending on whether the

More information

Stop Press - New rules for non-domiciled UK residents - Further food for thought?

Stop Press - New rules for non-domiciled UK residents - Further food for thought? Stop Press - New rules for non-domiciled UK residents - Further food for thought? 22 January 08 Draft legislation to implement the changes announced in the Pre-Budget Report on 9 October 2007 has now been

More information

*Figures provided in question. 1 7

*Figures provided in question. 1 7 Answers Fundamentals Level Skills Module, Paper F6 (UK) Taxation (United Kingdom) Section B March/June 2016 Sample Answers and Marking Scheme Marks 1 (a) Garfield Value added tax (VAT) return for the quarter

More information

Income tax computation

Income tax computation chapter 1 Income tax computation Contents Introduction Examination context Topic List 1 Charge to income tax 2 Gifts to charity 3 Independent taxation and jointly owned assets 4 Allowances for taxpayers

More information

Buy-to-let guide about tax

Buy-to-let guide about tax Perrys Chartered Accountants Buy-to-let guide about tax Introduction As a buy-to-let landlord it is important you know about tax and how it affects you and your investment. This is why Perrys Chartered

More information

TAX RATES AND ALLOWANCES 2012-2013

TAX RATES AND ALLOWANCES 2012-2013 TAX RATES AND ALLOWANCES 2012-2013 CONTENTS INCOME TAX RATES 2 INCOME TAX ALLOWANCES 2 PENSIONS 3 PERSONAL INVESTMENT INCENTIVES 3 BASIC STATE PENSION 3 NATIONAL INSURANCE CONTRIBUTIONS 4 CAR BENEFIT FOR

More information

Top 10 Tax Considerations for U.S. Citizens Living in Canada

Top 10 Tax Considerations for U.S. Citizens Living in Canada Top 10 Tax Considerations for U.S. Citizens Living in Canada Recent Canadian media reports have estimated that there are approximately one million U.S. citizens living in Canada and that a relatively low

More information

Invesco Funds. Société d investissement à capital variable (SICAV) United Kingdom Country Supplement. 22 August 2016

Invesco Funds. Société d investissement à capital variable (SICAV) United Kingdom Country Supplement. 22 August 2016 Invesco Funds Société d investissement à capital variable (SICAV) 22 August 2016 This United Kingdom country supplement forms part of and should be read in conjunction with the Prospectus of Invesco Funds,

More information

DECEMBER 2014 AUTUMN STATEMENT

DECEMBER 2014 AUTUMN STATEMENT DECEMBER 2014 AUTUMN STATEMENT SUMMARY The key announcements by The Chancellor providing opportunities for financial planning advice are outlined below. PENSIONS Summary of all the pension changes to apply

More information

2015/16 TAX TABLES. 51-55 Gresham St London EC2V 7HQ 020 7444 4030 partnerswealthmanagement.co.uk

2015/16 TAX TABLES. 51-55 Gresham St London EC2V 7HQ 020 7444 4030 partnerswealthmanagement.co.uk 2015/16 TAX TABLES 51-55 Gresham St London EC2V 7HQ 020 7444 4030 partnerswealthmanagement.co.uk INCOME TAX 15/16 14/15 Starting rate 0% 10% on savings income up to* 5,000 2,880 Basic rate of 20% on income

More information

A Guide to. Self Invested Personal Pension Schemes (SIPPS)

A Guide to. Self Invested Personal Pension Schemes (SIPPS) A Guide to Self Invested Personal Pension Schemes (SIPPS) Prepared by: John Hebblethwaite APFS CFP Chartered Financial Planner Managing Director May 2011 Contents Introduction... 3 Eligibility... 4 Contributions...

More information

Taxation of residential property structures: The new regime

Taxation of residential property structures: The new regime Page 1 Taxation of residential property structures: The new regime Christine Payne Smith September 2013 The Government's recent attack on the use of corporate vehicles to hold high-value residential property

More information

2016/17 TAX TABLES. savings. champion.co.uk

2016/17 TAX TABLES. savings. champion.co.uk 0/ TAX TABLES savings champion.co.uk INCOME TAX Rates / / Starting rate of 0% on savings income up to*,000,000 Savings allowance at 0% tax: Basic rate taxpayers,000 N/A Higher rate taxpayers 00 N/A Additional

More information

Coming and going II: focus on going exit strategies for the private client. Is getting up and going a good solution?

Coming and going II: focus on going exit strategies for the private client. Is getting up and going a good solution? Coming and going II: focus on going exit strategies for the private client. Is getting up and going a good solution? A joint session of the Family Law Committee and the Individual Tax and Private Client

More information

Income Tax Main allowances 2016/17 2015/16

Income Tax Main allowances 2016/17 2015/16 Tax Rates 2016/17 Income Tax Main allowances 2016/17 2015/16 Personal Allowance (PA)* 11,000 10,600 Blind Person s Allowance 2,290 2,290 Dividend Tax Allowance (DTA) 5,000 N/A Personal Savings Allowance

More information

CHAPTER 3 TAX RELIEFS

CHAPTER 3 TAX RELIEFS CHAPTER 3 TAX RELIEFS Tolley Exam Training EIS Diploma December 2014 Disclaimer Tolley takes every care when preparing this material. However, no responsibility can be accepted for any losses arising to

More information

2016/17 Tax Rates at a Glance

2016/17 Tax Rates at a Glance ADVISER FACTSHEET Tech Talk March 2016 2016/17 Tax Rates at a Glance Following George Osborne s Budget announcement on 16 March, please find detailed below the proposed new tax rates and tax bands which

More information

Using Life Assurance to Mitigate Inheritance Tax

Using Life Assurance to Mitigate Inheritance Tax T e T c e h c n h n i i c a l l B B r i r e i f e i n f g i n g Using Life Assurance to Mitigate Inheritance Tax Most of us use insurance policies in a variety of ways, to protect ourselves against the

More information

Luxembourg Individual Taxation

Luxembourg Individual Taxation Introduction Individuals are subject to a national income tax and a surcharge thereon and inheritance and gift taxes. Individuals may be subject to a municipal business tax if they run a business on their

More information

The higher rate threshold will also increase with the basic rate limit set at 32,000 for 2016/17 and 32,400 for 2017/18.

The higher rate threshold will also increase with the basic rate limit set at 32,000 for 2016/17 and 32,400 for 2017/18. UK Summer Budget Delivered on 8 July 2015 The Chancellor s first Budget of this parliament was expected to be radical. The announcements made yesterday were not quite as radical as might have been expected

More information

Country Tax Guide. www.bakertillyinternational.com

Country Tax Guide. www.bakertillyinternational.com www.bakertillyinternational.com International Tax Contact Moscow Andrey Kirillov T: +7 (495) 783 88 00 a.kirillov@bakertillyrussaudit.ru Corporate Income Taxes Resident companies, defined as those which

More information

For Adviser use only Not approved for use with clients. Estate Planning

For Adviser use only Not approved for use with clients. Estate Planning For Adviser use only Not approved for use with clients Adviser Guide Estate Planning Contents Inheritance tax: Facts and figures 4 Summary of IHT rules 5 Choosing a trust 8 Prudence Inheritance Bond (Discounted

More information

TAXATION OF FOREIGN INCOME ISRAELI RESIDENTS

TAXATION OF FOREIGN INCOME ISRAELI RESIDENTS TAXATION FOREIGN INCOME FELDMAN BRODY & Associates January 2010 No part of this publication may be reproduced without permission Website: www.feldmanbrody.com While every effort has been made to ensure

More information

TOLLEY S INCOME TAX 2013-14

TOLLEY S INCOME TAX 2013-14 TOLLEY S INCOME TAX 2013-14 Life Assurance Policies Extract To order your Tolley s Income Tax 2013-14 visit www.lexisnexis.co.uk or call 0845 3701234 42 Life Assurance Policies Introduction 42.1 Miscellaneous

More information

INHERITANCE TAX PLANNING. Sharing assets. Wills. Potentially exempt transfers (PETs)

INHERITANCE TAX PLANNING. Sharing assets. Wills. Potentially exempt transfers (PETs) INHERITANCE TAX PLANNING Substantial amounts of tax could be payable on the estates of individuals who do not plan for inheritance tax (IHT). The first 325,000 for 2014/15 is taxed at a nil-rate, but the

More information

CAPITAL GAINS TAX. Disposal of assets. Deductions. Rate of tax. Losses

CAPITAL GAINS TAX. Disposal of assets. Deductions. Rate of tax. Losses Capital gains tax CAPITAL GAINS TAX Relatively few people pay CGT each year about 146,000 in 2011/12 according to HMRC estimates but it can have a very considerable impact when it is payable. CGT is charged

More information