3rd September 2015

Summer Holiday Reading…

As the summer holiday season draws to a close it’s probably time to catch up on the summer reading we may have put off in favour of the latest holiday blockbuster.    The Chancellor’s summer budget on the 9^th July and subsequent Finance No2 Bill 2015 has brought more information on some key things affecting the financial planning world.  

There has been a significant change proposed with the removal of the dividend tax credit.  Is this an investment issue, perhaps, but it’s probably more of a remuneration issue for business owners. How will it work and who is affected? 

Has the 2010 Conservative manifesto promise of £1million IHT free arrived with the new residence Nil Rate Band?  Not quite. You may have caught the £1million headlines but the reality is slightly different. The devil is in the detail and essential knowledge for anyone active in the IHT planning world.

And finally, the reduction of tax relief for high earners, which isn’t actually a reduction to tax relief per se, is upon us.  The tapering of annual allowance for high earners is expected to impact around 1% of people but the transitional rules around pension input periods, required to make it work, affect everyone.  

Adjusted Income and Threshold Income has been added to Adjusted Net Income in the financial planner’s language.  Are they the same?  Does the new dividend allowance affect them?  

All things the financial planner must be aware of as they go about their daily business.

You can read more detail about these topics in our Oracle Technical newsletter on the PruAdviser website. 

Technical, Tax, Trust & ISA, CPD, Budget