Nicholls Stevens Financial Services
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Nicholls Stevens Financial Services
9 St Augustines Parade
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BS1 4UT
Nicholls Stevens Financial Services |
Telephone: 0117 9290456 Fax: 0117 9225919 E-mail us Mailing address: Nicholls Stevens Financial Services 9 St Augustines Parade Bristol BS1 4UT |
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| February 2010 | TAX YEAR END |
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As we near the end of the tax year, it is relevant to remind you of the changes which will occur in the new tax year. Personal
Allowances The first change is in fact a “no change” because the personal allowances and tax bands are being frozen for the tax year 2010/11. This means that most people whether in employment or in retirement will pay more tax because some of their income will have undoubtedly gone up with inflation (if not more) but the personal allowance will have remained static. Phasing
out of Personal Allowances The personal allowance will be phased out for anyone with income in excess of £100,000. The allowance will be reduced by £2 for each £1 of income over the threshold. This has the affect of a 60% tax rate on income between £100,000 and £112,950. The definition of income is gross taxable income less trading losses, pension contributions and Gift Aid payments 50%
tax band Although tax bands will not change, the Chancellor has introduced the 50% tax band which will affect those with incomes in excess of £150,000. The corresponding tax rate for dividends for those caught in this bracket will rise to 42.5% Taxation
on Trusts The tax on income generated from trusts will rise to 50% on interest and 42.5% on dividend income Change
to minimum retirement age At present if you are aged between 50 and 55 ie born between 1955 and 1960 you can take benefits from pension schemes from age 50 (This may not always be possible with occupational schemes) However, from April of this years the age limit rises to 55. So, if you want to get your hands on some pension or tax free cash act now! Changes
to S2P There are currently three rates of accrual for the Second State Pension (S2P) , as from April this will reduce to two levels of accrual 40% and 10%. The current rate of 20% which relates to the earnings band £31,800 and £40,040 reduces from 20% to 10% and so will the corresponding rebates for those contracted out. Again, this is bad news for higher earners as it reduces their entitlement to State Second Pension
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| Contact |
Victoria Blashill - to make an appointment 0117 9290456 or
email
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