The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Taxpayers may wish to consider basic tax planning arrangements in order to reduce the overall income tax burden across a family by ensuring allowances and lower rate tax bands are used. This type of tax planning is often considered at the end of the tax year in preparation for the next year.
This guidance note first examines the various income tax allowances and lower rate bands that should be considered and then various strategies that might be appropriate, depending on the family circumstances. It also looks at the relevant anti-avoidance provisions and actions to consider before the end of the tax year.
For other commentary that is relevant to year end tax planning, see the:
Tax efficient investments and Deferral of capital gains via reinvestment guidance notes, which consider investments that provide the taxpayer with relief from one or more taxes for the current tax year, or are exempt from income tax and / or capital gains tax
Utilising the capital gains tax annual exemption guidance note, which considers how the capital gains tax annual exemptions within the family might be best used
Timing of disposal for capital gains tax and 'Bed and breakfasting' with shares guidance notes, which consider the date of disposal of assets and the potential to delay the tax payment, and whether it is possible to dispose and reacquire an asset without triggering anti-avoidance rules
In general, the personal allowance cannot be transferred to another person or carried into another tax year, although in limited circumstances all or part of certain allowances can be transferred to a spouse or civil partner, see below.
If the individual does not have enough taxable income to set against the allowance for the tax year, the benefit of that allowance is lost for that year. See the Personal allowance guidance note.
The personal allowance is also lost or reduced for the tax year in the following circumstances:
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Legislative definition of plant and machineryThe general rule allowing capital allowances on plant and machinery is given at CAA 2001, s 11. There is no statutory definition of the term ‘plant and machinery’ but there is confirmation in the legislation on what constitutes a building or a structure
Taxpayers may wish to consider basic tax planning arrangements in use the capital gains tax annual exemption. This type of tax planning is often reviewed at the end of the tax year.This guidance note first looks at the annual exemption in detail and then various tax planning strategies that might be
If the taxpayer does not have sufficient information to enable them to complete the tax return in the time allowed, they should include either a best estimate or a provisional figure. The taxpayer should not either leave a box blank or enter ‘details to follow’ as HMRC will regard this as an
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s