Category Archives: Pre-Budget Report 2009

The position, however, for high earners after 2011 will be different. The Government announced at Budget 2009 its intention to restrict tax relief on pensions savings with effect from 6 April 2011 for those with incomes of £150,000 or over. Today it issued a consultation document on how the restriction will be implemented from April … Continue reading Pensions – after 6 April 2011

Several opportunities have been provided to taxpayers ‘to come clean’ about the holding of undeclared offshore assets or bank accounts. These include the 2007 Offshore Disclosure Facility, the New Disclosure Opportunity and the Liechtenstein Disclosure Facility. The final opportunity for disclosure ends on 4 January 2010 (unless another final Facility is introduced (again) or the deadline for … Continue reading Offshore is bad, very bad

In today’s pre-budget report, the Chancellor announced that the anti forestalling measures on tax relief to pension contributions for high earners (introduced at Budget 2009) will be extended to individuals with “relevant income” of £130,000 or more. The income threshold was previously set at £150,000 in April. At the core of the anti-forestalling provisions is … Continue reading Pensions – up to 2010/11

A consultation document has been released containing draft legislation amending the regime requiring tax avoidance schemes to be disclosed to HMRC.  These proposed measures include revising and extending the hallmarks (which identify the types of schemes that must be disclosed), bringing forward the trigger point for disclosure of marketed schemes, imposing additional information requirements on promoters and on intermediaries … Continue reading Tougher disclosure regime

A few further points.  The 50% levy will not be  deductible for corporation tax purposes. It will be payable on 31 August 2010. Although they are only stated as applying to bonuses awarded or paid before 6 April 2010 one could imagine that date maybe being extended. It is not just banks – UK resident companies … Continue reading Banking bonus – further points

Recent weeks have seen both the French and the Spanish Governments withdraw their sports-related tax breaks. The French have ended their “droit à l’image collectif”, which allowed football clubs to treat up to 30% of a player’s income as a payment for exploitation of their image rights rather than salary, and the Spanish have announced … Continue reading Sports tax

As has already been noted on this site, the condition that companies can claim research & development (R&D) tax relief on qualifying expenditure deriving only from intellectual property that they own has been removed for companies that are small and medium sized enterprises. This change is welcomed but it is disappointing that the Government has not taken the … Continue reading R&D tax relief relaxation

The Chancellor announced a further increase of 0.5% (on top of the 0.5% rise we were already expecting) on employee and employer NICs.  The increase will come into effect on 6 April 2011. This means high earners will have a marginal NICs rate of 2% and companies will have to pay 13.8%. This widens the … Continue reading Surprise NICs increase

Assuming no exemption is available then it seems to work like this: Bank pays £100,000 bonus. Bank is required to pay £37,500 in “supertax” to HMRC (the first £25,000 of the bonus does not attract the supertax). The bonus of £100,000 is then subject to tax and NICs in the usual way. Employer’s NICs of £12,800 (at 12.8%) and income tax … Continue reading Bank Payroll Tax: Example