When you look at your annual tax statement, have you ever wondered about the overall cost of the tax reliefs you enjoy? HMRC has published its latest annual assessment of the cost of various tax reliefs, and there are some eye-opening numbers. If you were the Chancellor of the Exchequer, looking for a way to…
Read moreThe PPM doors are now closed for another year. We will reopen on Monday January 6th. Thank you to you all for your support, over the last 12 months. 2020 promises to be an exciting year, and we look forward to sharing these changes with you in 2020. Wishing you all a very Merry Christmas…
Read moreThe planned reform of probate fees in England and Wales has been scrapped. A year ago the government tabled proposals to increase the level of probate fees in England and Wales. The idea was to move from the current single fee approach (£155 via a solicitor, £215 otherwise) to a sliding scale, based on estate…
Read moreRecent data show that dividends from UK shares rose by nearly 7% year-on-year in the third quarter. UK shares continued to grow faster than inflation in the third quarter of 2019, despite all the political turmoil the UK experienced over those three months. Compared with the same quarter in 2018, total UK dividend payments rose…
Read moreVenture Capital Trusts have started their fundraising for 2019/20. There was a time when tax year end planning didn’t begin until well after the New Year festivities were over and a March Budget was nearing. This rhythm has now shifted. The last months of the tax year are still important, as they are the point…
Read moreAre you reluctant to make a lump sum investment in case the timing is wrong? It’s been both a roller coaster and a trip to nowhere for the FTSE 100 index in recent years. From 1 January 2017 to date, the index has moved in a band of about 1,300 points, but by 23 October…
Read moreNew proposals for reforming capital gains and income tax have been published by an influential think tank which could make their way into an election manifesto. The Institute for Public Policy Research (IPPR) is “the UK’s pre-eminent progressive think tank”, according to its website. This may sound like boasting, but it is probably a fair…
Read moreAn obscure adjustment to old pension benefits, mandated by the courts, might cost some pension owners many thousands in additional tax. The problems caused by the tapering of the annual allowance have been making the pension headlines for some time. Whereas the original focus was on NHS consultants and doctors, the issue is now rippling…
Read moreMarks & Spencer was demoted from the FTSE100 in September. The FTSE100 is subject to a quarterly review of its 100 constituents. The process is not quite as simple as picking the 100 largest companies listed on the London Stock Exchange, but it’s not far off. The latest review took effect on 23 September 2019…
Read moreIn September the US and European central banks cut interest rates, again. When the US central bank, the Federal Reserve, cut its main interest rate by 0.25% at the end of July, it was the first reduction in over 10 years. Less than two months later, the Fed announced a second cut by another 0.25%.…
Read moreAnnuity rates hit their lowest level since 1994 in September, with implications for those making retirement decisions. Since the introduction of pensions flexibility in 2015, annuities have become much less popular as a way of converting a pension fund into income. The most recent figures from the Financial Conduct Authority show that over five times…
Read moreA recent report looking at who pays the most income tax reveals some interesting findings. The Institute for Fiscal Studies (IFS) published a briefing note in early August with a detailed answer to the question of what it takes to enter the 1% club. Around 310,000 people make up this cohort, with some predictable and…
Read moreNew figures show HMRC’s “customer compliance” efforts are yielding substantial sums. In early August, HMRC issued its annual report and accounts for 2018/19. While not everyone’s choice of holiday reading, it did contain some eye-opening information about the “compliance yield” - how much HMRC raised from its work in countering tax avoidance schemes, tax evasion…
Read moreIs a state pension age (SPA) of 75 looking more likely? Recommendation The SPA should better reflect the longer life expectancies that we now enjoy and be used to support the fiscal balance of the nation. The SPA in the UK is set to rise to 66 by 2020 (Pensions Act 2011), to 67 between…
Read moreThere are currently long delays in gaining probate on the estates of the recently deceased. Late in 2018, the government issued a written statement announcing its intent to go ahead with controversial increases in probate fees for England and Wales. Instead of the current flat fees of £155 for applications through a solicitor and £215…
Read moreStock markets, as well as some family holidaymakers, experienced a roller coaster August. The traditional holiday month proved to be anything but quiet on the world’s investment markets. Inevitably the downward trends attracted more attention, particularly the fall in US share values on 13 August. “Dow drops 800 points” is a headline that newspaper editors…
Read moreA Freedom of Information (FoI) request has revealed a gap in HMRC’s knowledge about how many people have been hit with penalties around the annual allowance. The annual allowance, which effectively sets the tax-efficient ceiling on annual pension contributions, used to be a subject of little interest, even among pension professionals. When it started life…
Read moreThe Treasury has had a rethink on company car tax rules which may make you review your company car needs. Do you know your WLTP from your NDEC? If you drive a company car, it might be useful to understand the distinction between the two: * WLTP is the Worldwide Harmonised Light Vehicles Test Procedure,…
Read moreThe Office of Tax Simplification (OTS) published its long-awaited second report on inheritance tax (IHT) in July with a range of useful proposals. The report, focused on simplifying the structure of IHT, contained some surprises, not only in the recommendations it makes, but also in those areas it has left untouched. Gifts The OTS suggests…
Read moreJuly ended with a new prime minister in Boris Johnson and a new chancellor in Sajid Javid, both with different ideas from their immediate predecessors. There is already speculation about what Mr Javid might produce in his first Budget and more importantly, what some much publicised tax proposals could cost. At the start of his…
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