Wendy Walton on the key 2010 changes affecting private client advice, and what's ahead in 2011
Key changes affecting private client taxation in 2010 are:
1. Income tax: the new 50% rate
The 50% ‘additional rate’ of tax on income of over £150 000 which came into effect on 6 April 2010 is the highest UK income tax rate since 1987/88.
Why it matters: Whilst no-one wants to pay more tax the 50% rate is seen by many as a significant level of taxation and there is considerable interest in methods of mitigating its impact. Table 1 summarises the main types of strategy and gives examples of each.
2. CGT: the increase to 28%
After much agonising The coalition government increased the capital gains tax rate to 28% for gains arising after 22 June 2010 with transitional...
