Over 1 million Brits to be dragged into higher tax bands by 2027
Clients encouraged to make more efficient use of allowances
ANNOUNCEMENT: UK Adviser is now PA Adviser. Read more.
Clients encouraged to make more efficient use of allowances
‘At the moment, it would be extremely challenging to make long-term policy decisions’
But taxman’s clampdown could see legitimate planning hit as ‘collateral damage’
Rumours UK chancellor could also introduce a £30,000 cap on gifts in inheritance game changer
They have a reputation of being ‘complicated and difficult to set up’
UK advisers need to shake off their discomfort and bring up uncomfortable subjects – like inheritance
With the Budget only a few days away, industry experts share their views on what to expect
The marriage of late comedian Ken Dodd to his long-term partner, and the fact that HM Revenue & Customs lost out on nearly £3m ($4.2m, €3.4m) as a result, has prompted questions about the timing of financial planning, especially so-called “deathbed planning”.
With the budget lacking much detail, the financial services industry has been left to ponder what the chancellor actually meant when he said the government will publish a consultation in 2018 on how to make the taxation of trusts simpler, fairer, and more transparent.
Anti-avoidance measures targeting the tax treatment of payments and benefits from offshore trusts will make the use of such vehicles less appealing, says FPI’s Brendan Harper.
HM Revenue & Customs will be able to review “disproportionate” tax bills slapped on people who withdraw money from their life policies but “it is crucial that this isn’t seen as a safety net”, warns Old Mutual Wealth tax and financial planning expert Rachael Griffin.
The number of Qrops transfers in the last financial year dropped to the lowest level since 2010/11 and is expected to fall further on the back of the UK Government’s 25% charge, as the amount of money accessed via the pensions freedoms hits a record high.