There have been considerable changes to the pension contribution rules
over the last couple of years.
In summary, these are as follows:
• Any individual can make payments of £3600 per annum gross
of tax, whether they have an income or not.
• If an employer makes a contribution on behalf of an employee, this
will be tax deductible in that employer's accounts as long as the
payment is made 'wholly and exclusively1 for the purposes of the
trade.
• The maximum any individual can pay in any pension payment period
(which is usually the same as the tax year) is normally £21,5000
and any
contributions over this will be subject to income tax of 40%. There
are
some exceptions to this rule.
• There is no longer a provision which allows excessive personal pension
contributions to be carried back to the prior year. Some special
rules remain in place for retirement annuity contributions.
Edward Appleton: "You can make huge
tax savings which can transform your life, when you know how."
Ralph Ellerton: "Appletons live and
breathe the paperwork so you don't have to!"
Tax Returns
If you submit your tax details to us, we can advise you of
your exact tax liability.
Your Estate
Inheritance tax is a concern for more and more families. Effective
estate planning is vital to ensure that your assets will go to
your chosen beneficiaries.
When making your estate plan consider the following factors:
Who do you want to benefit from your wealth?
This may include your spouse or partner, children, grandchildren, and any charities
you may wish to include
Should assets be placed into a trust restricting access toincome
and/or capital?
How will the business be passed on?
If you pass your business on to your children, should you consider multiple
ownership?
Making the most of gift
It could be said that the art of inheritance tax planning is
to give away as much as possible during your lifetime, while
still ensuring that you have enough left for a comfortable lifestyle
in retirement. We can help you create a tax-efficient gifts strategy
to achieve your personal goals and meet your capital or income
requirements.
Appletons can help you to keep an estate plan tax-efficient
and up-to-date. Why not give us a call.
