Taxation

Experts in Personal Taxation, Residence & Domicile

Please contact us to discuss how we can help


Income Tax
Regardless of what the Government and HM Revenue & Customs may say, the system of taxation in the UK is becoming progressively more complicated with numerous rates of tax applying to income and capital gains tax alone.
 

Income tax rates run from 10% to 45%, Capital Gains tax from 10% to 28% and Inheritance Tax can be 20% during your lifetime or 40% on death.

 

However there are many ways to delay or mitigate the headline rates of tax and we are able to help you with planning or reporting of all the taxes.
 

If you require a solution for your circumstances or help completing a UK tax return please do not hesitate to contact us

 

Capital Gains Tax and Entrepreneurs Relief 

With income tax rates as high as 45% the attraction of capital gains tax is obvious with the lower rates of 18% and 28%.
 

However  the distinction between income tax and capital gains is not always clear with, for example, some offshore investments and indeed property.
 

Entrepreneurs Relief
In addition Entrepreneurs Relief means that the rate of 10% could be due although there are many traps for the unwary especially with the question of whether a business qualifies for the relief and restrictions that apply to Associated Disposals.

 

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Inheritance Tax

Despite changes in recent budgets that increased the Nil Rate Bands and enabled the transfer of any unused proportion of nil rate bands to the surviving spouse, Inheritance Tax (IHT) is still charged at 40% of the net estate.
 
The promise prior to the election of a nil rate band of £1million did not come into force after the Emergency budget, with it instead remaining at £325,000 and frozen at that level for the next few years.

 

The tax is complicated and, indeed where there have been life time gifts the whole estate could be within charge. Furthermore, the effect of the Previously Owned Asset legislation and the implications of retaining beneficial ownership of assets (even if you believe you have given them away) need to be considered. 


IHT is charged by reference to domicile and if the deceased has been domiciled within the UK throughout their lifetime the whole estate will be within charge. This will be the case regardless of where assets are located. 


Even if the deceased was not UK domiciled their UK estate will be within charge to IHT.

 
If you are concerned about IHT then you should consider your:

  • Domicile
  • Value of your estate 
  • Proportion of unused spouses nil rate band that is still available 
  • Whether your will is up to date (or indeed whether you have one at all) 
  • Use of trusts or lifetime gifts 
  • Investments or assets that can be held free of IHT 
  • Appropriate elections 


Trusts 

Despite changes in the 2006 and 2008 budgets trusts can still be be used effectively to reduce tax or protect assets. This can be the case for UK or non resident trusts. Of course the use of a trust is a detailed area and you should always take expert advice. 

 

Contact us if you would like to discuss any of the above in more detail

Address

MJH Tax Ltd

Guildbourne PS
2a Ann Street

Worthing

BN11 1NX

Making an appointment

If you have any queries or wish to make an appointment please contact us:

 

Mob: + 44 7904 183284

Tel: +44 1273 251258 +44 1273 251258

Email: mjh@mjhtax.co.uk

Skype: mjhtax

Whatsapp: +44 7904183284
 

Alternatively, please use our contact form.