Chartered Accountants of Poynton, Cheshire

Pension Payments

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.

Inheritance Planning

Inheritance tax (IHT) has been described as a 'voluntary' tax for the very wealthy, but a 'serious' tax for the merely comfortable !

This is because the very wealthy can afford to give their wealth away during their lifetime, but those who aren't so well off need to keep their personal wealth to fund their retirement.

Large numbers of these 'comfortable' people are now finding that increased property values has meant that their estates will now be liable for inheritance tax when they die.

Inheritance tax (IHT) is currently payable where a person's taxable estate is in excess of £275,000. Therefore, if you own your own home and have some savings, life assurance policies or other assets, your estate could be liable for IHT.

Fortunately, this IHT tax bill can be largely avoided – we at Appletons are here to show you how.

What does IHT mean for you - and your family?

When you die, tax will be payable on the combined value of your death estate and any gifts made in the preceding seven years which have not qualified for one or other of the lifetime gifts reliefs.

The tax is payable from your estate, so if you want to make sure that the taxman's slice is kept to the minimum, you need to start planning now.

How we can help

We can help you put together a personal plan for minimising the inheritance tax on your estate, using one or more of the key strategies:

• gifts in your lifetime, including trusts
• a tax-efficient Will, including a nil-rate discretionary trust
• life assurance.

Click here for Effective IHT Planning and Strategies >>>

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