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income tax

The importance of planning and using allowances

Last week saw Chancellor Rishi Sunak’s Summer Mini Budget – with a give, give, give mindset.  We did mention in the article that it would be prudent to use allowances before changes to taxation are adjusted……

Click the link to read the Summer Mini Budget article:
https://www.bestpricefs.co.uk/blog/chancellor-rishi-sunak-promises-another-30bn-in-summer-mini-budget/

Yesterday, the Chancellor commissioned a review of Capital Gains Tax (CGT) – asking the Office of Tax Simplification to consider the overall scope of the tax and the rates which apply.

Click the link to read the article that was published in FT Adviser:
https://www.ftadviser.com/investments/2020/07/14/chancellor-eyes-capital-gains-tax-overhaul/

We can expect changes to be made so use all allowances and plan effectively, when taxation rates are favourable.

Wales – Land Transaction Tax

Yesterday, Finance Minister – Rebecca Evans – announced that from 27 July until the end of March 2021 properties sold for £250,000 or less will not suffer the Land Transaction Tax, or as many still refer to the tax as Stamp Duty, as in England and Northern Ireland.

The charge will not apply to second homes or Buy to let properties, which have to pay an additional 3% in tax.

The current zero banding is £180,000 so Ms Evans stated that the new threshold would mean ‘no tax would be paid on around 80% of transactions in Wales where the main residential rates apply’.  Currently, properties sold for between £180,000 and £250,000 suffer 3.5% of the value in tax.

As always, we recommend ‘planning’ ones financial position and monitoring the ‘plan’ so to ensure the ‘plan’ remains on track.

Simply get in touch if you require Independent Financial Advice.

Warmest Regards.

Best Price FS Team