Tax changes and efficiencies

 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)