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SarahBell

Company Tax Changes

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Following the hike in dividend tax rates from 6
April 2016, and the surprise cutting of capital
gains tax (CGT) rates, HMRC are keen to ensure
that money taken out of a company is taxed as
income rather than capital as much as possible.

New rules, and amendments to existing ones, will
go some way toward doing this; however, a darker
possibility is also lurking in the background.


The May issue of Tax Insider is out today, and
Andrew Rainford muses over recent changes to
company distributions, as well as potential
further reform based on HMRC consultation.

Remember, forewarned is forearmed!

https://www.taxinsider.co.uk/tax-insider.html

What is the darker possibility?

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Following the hike in dividend tax rates from 6

April 2016, and the surprise cutting of capital

gains tax (CGT) rates, HMRC are keen to ensure

that money taken out of a company is taxed as

income rather than capital as much as possible.

New rules, and amendments to existing ones, will

go some way toward doing this; however, a darker

possibility is also lurking in the background.

The May issue of Tax Insider is out today, and

Andrew Rainford muses over recent changes to

company distributions, as well as potential

further reform based on HMRC consultation.

Remember, forewarned is forearmed!

https://www.taxinsider.co.uk/tax-insider.html

What is the darker possibility?

Only relevant if you hold (substantial amounts of) shares outside a tax shelter.

Under current rules you can shelter £40k/year in a SIPP and £15k in an ISA. If that's not enough, you can use other tax shelters for much larger sums. Closing any of them would be a darker possibility.

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The dividend tax hike hasn't had anywhere near enough press in my opinion. To put up someone's income tax rate by 6% is quite significant, the consequences of this for house buying will be evident soon. I'm not buying, but if I was I'd be negotiating a further 6% off...

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