Archives – April, 2012
Now that the top income tax rate is definitely being cut to 45% and we know this will take effect on 6 April 2013, clients may be wondering if they can avoid paying the 50% rate altogether. For some taxpayers, the 50% tax rate coupled with the withdrawal of the personal allowance for higher earners has meant they have been taxed at an effective rate of 62%. This happens where total income falls into the £101,000 to £113,000 band where the erosion of the personal allowance has the biggest impact. (more…)
April 30, 2012
Continuing with our detailed analysis of the tax planning opportunities that arose following the Budget 2012, we turn our attention to tax efficient investment opportunities. We already have VCTs and EIS, both of which we have covered in detail before. These were further enhanced in the Budget with a new scheme, SEIS (Seed Enterprise Investment Scheme), which is specifically aimed at start up companies. (more…)
April 30, 2012
According to Government figures, R&D tax credits provide nearly £1 billion of support to over 6000 UK companies. Over the past year, RJP has helped many clients to reduce their corporation tax bills – some to almost nothing – by taking advantage of the Government’s R&D tax credits scheme. This is a generous relief and allows over 200% of the money invested in qualifying R&D activities to be offset against corporation tax. (more…)
April 27, 2012
Setting up an EMI share scheme can be a very useful tax planning tool. Some important changes were announced to the EMI enterprise management scheme in last month’s Budget. Overall, the net result is a very positive one, as it significantly widens access to EMI options. These have been shown to be a worthwhile and tax efficient method of offering share options to employees. In addition to broadening access to the scheme itself, the individual limits to the amount of shares that can be held have also been increased. (more…)
April 13, 2012
