Tag Archives: income tax

Income tax on inherited pension funds

income tax

Currently, where an individual pension holder dies before age 75, drawdown pensions paid to a successor can generally be received free from income tax. Where the pension holder dies over the age of 75, then the amounts drawn by the successor are taxed at their marginal income tax rate. Note also that the current tax…

Income tax rates stand still

Undoing all measures announced since 23 September 2022, the rates of income tax applicable to non-dividend income remain as they are now; namely a 20% basic rate, a 40% higher rate and a 45% additional rate (for those with income over £150,000). For dividends, although the associated 1.25 percentage point supplement on NICs is being…

What can I do to save income tax? Things to consider pre 6 April 2020 – Part 4

PART 4 – Reliefs for tax efficient investments Parts 1, 2 and 3 of this series considered the tax savings of pension contributions, charitable donations and what else you can do to ensure your entitlement to the personal allowance of £12,500. The final part of this series looks at a number of investments that qualify…

What can I do to save income tax? Things to consider pre 6 April 2020 – Part 1

pension planning

PART 1 – Pension contributions – have you fully utilised your annual allowance? This allowance is up to a maximum of £40,000 per annum for UK individuals under 75. However, this is tapered down by £1 for every £2 for taxpayers whose income is between £150,000 and £210,000 to a minimum of £10,000. It is…

Year-end Capital Tax planning

Capital gains exemption, inheritance tax

Have you used your 2018/19 £11,700 annual capital gains exemption?  Consider selling shares where the gain is less than £11,700 before 6 April 2019. In addition, if you have any worthless shares, consider a negligible value claim to establish a capital loss. You may even be able to set off that capital loss against your…

4 ways to improve your farming business: 2. Understand tax and capital gains

Getting a better understanding of your tax liabilities is a fundamental tool in improving the financial success of your farm or agricultural business. As we highlighted in our previous blog, it’s vital that you have a clear focus on maintaining positive cash flow and have profitability built into your farm’s business model.  And one of…

4 ways to improve your farming business: 2. Understand tax and capital gains

Getting a better understanding of your tax liabilities is a fundamental tool in improving the financial success of your farm or agricultural business. As we highlighted in our previous blog, it’s vital that you have a clear focus on maintaining positive cash flow and have profitability built into your farm’s business model.  And one of…

4 ways to improve your farming business: 1.Address your profitability and cash flow

When push comes to shove, you want your farm to turn a profit. All the early starts and long working days should translate into a healthy year-end profit – but that will only happen if you’ve got control over your spending, revenues and cash flow. So, how do you address the issue of getting on…