Monday 25 April 2016

CAPITAL GAINS TAX

The Capital Gains Tax Allowance level remains at £11,100 in 2016/17 but there has been a change

in the charging structure for capital gains. Above the £11,100 allowance level, capital gains tax will

be charged at 10% for basic rate taxpayers and 20% for higher rate tax payers — except for second

properties where the tax will remain at the 18% and 28% rates respectively. This is meant

to encourage people to invest in stocks and shares rather than property.


Monday 18 April 2016

STAMP DUTY ON PROPERTY PURCHASE

(Note: There is a 3% increase on all bands for Buy-To-Let/Second Property)

                   
                             Residential             Second Property/Buy to Let


£0 to £125,000                  0%                                 3% (0% up to £40,000)

£125,001 to £250,000       2%                                 5%

£250,001 to £925,000       5%                                 8%

£925,001 to £1,500,000   10%                              13%

£1,500,001 plus               15%                              18%


Note: The Chancellor did also announce some changes to Stamp Duty on purchases of commercial property.

Contact us if you need details.




Tuesday 12 April 2016

TAX NOTES for 2016/17

Personal Allowance      £11,000 (reduced for those with incomes over £100,000)

20% Rate Tax Band     £32,000 (adding in the personal allowance of £11,000 means
                                            that your income would need to be in excess of £43,000
                                            before the 40% rate starts to be charged)
Dividend Income Nil
Rate Band                   £5,000

Personal Savings
Allowance                   £1,000 (basic rate taxpayer), £500 (higher rate taxpayer)

ISA Allowance             £15,240 (same as last year)

Lifetime Pension
Allowance                   £1 million

Inheritance Tax Nil
Rate Band                   £325,000 (same as last year)

Annual Pension
Allowance                   £40,000 (reduced for those with income in excess of £150,000)

Rent-A-Room
Allowance                   £7,000 per annum - tax free (up from £4,250 last year)

State Pension              New Single Tier State Pension comes into effect