On 6th April 2009 the Inheritance Tax threshold was increased to £325,000. it had been increasing steadily over a number of years since there was consternation among the general public that the level of the allowance would mean that the majority of people who had houses of a decent size would be impacted by the tax.
However, once it reached the level of £325,000 the amount remained static and there is no plans to increase it until at least after 5 April 2015.
Although a 10% starting rate of personal income tax was introduced by Gordon Brown in 1999 as the lowest rate of tax, it was also discontinued by him in 2008 to make way for the abolition of tax for earnings up to £10,000 which was planned to be introduced on a gradual scale. Continue reading Is There Still a 10% Tax Rate?
Dealing with tax matters after the death of a relative can be tricky as well as upsetting. One thing you may be wondering about is if they still have a full personal allowance in the tax year of their death so that you are able to deal with their taxes and income for that year. Continue reading Personal Allowance in the Year of Death
There has been a lot of press lately about the K2 Tax Avoidance schemes that are used by some high earners to significantly reduce their tax bill. The one person who was singled out by Prime minister David Cameron was comedian Jimmy Carr. Continue reading Are K2 Tax Schemes Legal?
There are a few categories of taxpayer that get extra allowances and currently over 65s and over 75s are two of those. However, this may not last long! Continue reading Do Over 75s Get An Extra Tax Allowance?
Although the phrase itself implies avoiding paying tax, there is a big difference between tax avoidance and tax evasion. Tax avoidance schemes have been commonplace for decades and they are in fact a legitimate way to reduce your tax bill. Continue reading Tax Avoidance
It is very easy to analyse figures when there are different factors involved and to come up with an equivalent tax figure. This equivalent figure is basically classed as the amount of earnings you will lose in tax as your earnings increase over various levels. Not only do you take into account the actual tax you are paying but also any difference in tax paid at a lower rate. Continue reading 60% Tax For Earnings Over £100k
So with every new tax year comes changes in the UK personal income tax rates. Since the change in Government there have been quite a few changes in not only personal allowances but also income tax. Continue reading Income Tax Rates 2012
So there is only one day left for the 2011/12 tax year and this means that many people will be making sure that they have used up their personal allowances in terms of savings and investments. The government sets maximum limits on how much you can put into tax free (ish) saving plans each year and the year runs from 6 April until 5th April. Continue reading Last Chance For 2011/12 ISA
The Chancellor of the Exchequer, George Osborne, announced in the budget today that the age related personal allowances will be scrapped in the coming tax years. This will mean that people who reach 65 in 2013 will lose money. Continue reading Age Related Personal Allowances to be Scrapped