A New Tax Year – Finance Act 2010

by Kidd Rapinet on April 21, 2010

The new tax year is a good time to put your personal tax affairs in order. Are you taking full advantage of all personal tax reliefs? Have you taken lawful tax avoidance measures to reduce the amount of tax you, or indeed your company, are paying?

Gurvinder Sehra, a partner in Kidd Rapinet’s High Wycombe office says:

“Our private clients benefit from a wealth of personal tax and advice at the firm. Now could be a good time to make your will, particularly as inheritance tax thresholds have been frozen in the Finance Act 2010.

“National insurance contributions are due to rise next year depending on which Government wins power and plenty of our clients have benefited from advice on how to go self-employed and how to structure their work, business or company to take advantage of lower rates.

“Given the difference between 50% income tax and 10% CGT for those selling a business (for the first £2m of gains), it can be wise to take advice on how you can ensure your affairs are structured so that you are paying capital gains tax rather than income tax. In addition, individuals have an annual CGT allowance, which many do not use, and which has been frozen for 2010-11 at £10,100. Advantage can be taken of this.

“The removal of stamp duty land tax on properties up to £250,000 for first time buyers in the new legislation can be complex. It is worth taking legal advice on what is a ‘first time buyer’ and how to structure a purchase to take advantage of it.

“Also, some may be contemplating divorce or separation and it can be wise to see lawyers in advance of such decisions so that you know your full legal position if you decide to proceed.”

Contact us if you need advice on your private affairs. Call Gurvinder Sehra on 01494 535321 for further information.