Frank Nash, partner at Blick Rothenberg, comments on the Miliband family's use of a tax-avoidance scheme including a loop hole called the 'deed of variation'.
He comments: "Before 2007 they would have largely been used to reduce the tax bill… to make the will more tax efficient than it otherwise would have been. You have to say that a deed of variation can be beneficial for tax purposes, but it does have a real economic effect on the family. It can have a tax advantage, but I have seen just as many cases to sort out family rows, so it serves two purposes equally."
Source: The Daily Mail, The Daily Mail [online]
Following the accusation that Ed Miliband has been avoiding inheritence tax by using a deed of variation to his fathers' will, Frank Nash explains what the use of this deed has allowed for: "What the deed seems to have done is to pass the £150,000 taxfree allowance from the father directly to the children," he says. "If the father had sat down a month earlier and written the will to do that there would have been no issue."
Source: The Guardian [online]; ExecReview [online]
Frank Nash, partner at Blick Rothenberg, explains a loophole offering a legitimate way to of buying a second property for your children, which avoids paying capital gains tax.
Source: The Sunday Telegraph; The Telegraph
In the lead up to Valentine's Day (and the likely high number of upcoming marriage proposals), Nimesh Shah explains how it is better from a tax point of view to be married.
He comments: "Generally speaking, it is better from a tax point of view to be married. The UK tax system is designed to reward the institution of marriage."
Source: The Sunday Times; The Sunday Times [online]
Nimesh Shah, partner at Blick Rothenberg, warns medical workers in the NHS and private sector may face tax bills following April's pension changes.
He comments: "The first problem with the new rules is the reduction in the amount that a person can contribute annually to their pension. This is now capped at £40,000, and contributions in excess of this amount will no longer attract tax relief."
"Secondly, the amount a person can build up in their pension is also capped at £1.25m, and if they breach this limit they could face a tax charge of 55% on the excess".
Source: Financial Advisor; Financial Times Advisor; Taxation
During the tax return period, Nimesh Shah, partner at Blick Rothenberg speaks to a frustrated individual attempting to complete self-assessment.
Source: The Sunday Times
Robert Pullen, tax manager at Blick Rothenberg, warns of the misunderstanding surrounding the cost of entrepreneurs’ relief to the government
He comments that not only do rising claims reflect improvements in business activity over the past five years, but the lower rate of CGT encourages business owners selling up to pay UK tax.
“There is no way that the Revenue would have been able to raise the same amount of tax if entrepreneurs were paying tax [on the sale of their business] at a rate of 28 per cent.”
Source: Financial Times [online]
Following HMRC releasing the 10 worst excuses for people not filing or paying their tax returns on time, Nimesh Shah, partner at Blick Rothenberg, warns of the penalties people can face when the deadline is missed. He comments; "“Within six months you could be facing total penalties of at least £1,300,” Mr Shah said. “The penalties start to become even more serious if your tax return is more than 12 months late and can be as much as 200pc of the tax. In addition HMRC will charge daily interest at 3pc.”
Source: The Telegraph
Martin Reynard, financial planning manager at Blick Rothenberg, gives advice to a reader regarding auto enrolement into a pension scheme.
Source: Tax Confidential
Following the shift of the higher rate threshold for the first time in five years, Genevieve Moore, partner at Blick Rothenberg, comments; "138,000 people taken out of higher rate tax with the first increase in the 40% bracket for five years is a welcome announcement but there is still a long way to go before the £50,000 higher rate bracket is achieved".