Tax changes and efficiencies
With the new tax year now underway, several papers provide details of tax changes due in the coming weeks. The key ones include the increase from £11,500 to £11,850 in the personal allowance, with income above that level taxed at 20%, with the 40% band starting at £46,351 (up from £45,001). The 45% additional rate continues to start at £150,001 and NI will be charged at 12% on earnings above £8,424, up from £8,164, and 2% on income above £46,350, previously £45,000. The first £11,700 of capital gains will be tax-free, up from £11,300 in the last financial year, while the tax-free dividend allowance drops to £2,000, down from £5,000 in 2017-18. The Mail on Sunday provides a list of ten top methods for beating the taxman this year, from taking advantage of little-known allowances, through to saving and investing tax-efficiently and effective inheritance tax planning.
Source: The Observer (08/04/2018)