Capital Gains Tax Proposals April 2008 (CGT)/Updated 2009/2010
Wednesday, January 28th, 2009New rules have been implemented in this tax year (2008/2009) in the way that Capital Gains tax is applied. As an example, if you hold shares or unit trusts, this could affect the way you invest for the future. For information, the Capital Gains Tax allowance in this tax year is £9,600 (2008/2009).
Capital Gains Tax is now charged (if applicable) at a flat rate of 18%, irrespective of your income tax position. The offsetting of losses is still possible, however you may want to discuss this with your accountant before making any changes.
Before the end of the tax year (05th April 2009) it is important to consider this valuable tax allowance (particularly for higher rate tax payers) and taking advice is paramount.
Update:
The new allowance for Capital Gains Tax in the tax year 2009/2010 is £10,100, and remains a highly valuable allowance for tax payers. As noted above, with the flat rate of tax charged to capital gains of 18%, excessive gains, although taxable, should be attractive to higher rate taxpayers.
Churchouse Financial Planning is authorised and regulated by the Financial Services Authority.
Retirement Planning & Pension Rules 2009
Wednesday, January 28th, 2009Many Clients will remember the changes that occurred to pensions at Pensions ‘A’ day in April 2006. For clients with large pension funds or benefits (£1.65M/ £75,000 per annum income) the ability to protect this benefit ends in April 2009. This is referred to as Primary or Enhanced Protection.
If you are unsure if you would be affected by these rules then please contact us to check. The tax charges that could be applied after April 2009 could be high and punitive.
Also, the minimum age to which you can draw pension benefits is increasing from age 50 to 55 in April 2010. We have had some clients who have had their retirement strategies adversely affected by this change.
Don’t forget that saving into a pension is still a highly tax efficient way of saving tax. We look forward to hearing from you if these points affect your planning.
Churchouse Financial Planning is authorised and regulated by the Financial Services Authority.
