September 2018 Tax Tips & News

Welcome... To September's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman. If you need further assistance just let us know or you can send us a question for our Question and Answer Section. We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year. Please contact us for advice in your own specific circumstances. We're here to help! September 2018 · HMRC consult on BIK changes · MTD research published · VAT treatment of vouchers · OTS proposals new online PAYE platform · September questions and answers · September key tax dates

DAILY TAX TIP: ISAs on Death

DAILY TAX TIP:

ISAs on Death

It is now possible for married couples to inherit each others cash in an ISA and keep the tax breaks on death. The surviving spouse will obtain a special ISA allowance, which will allow them to put the extra amount into their own ISA equal to the value of their dead spouse’s ISA.

DAILY TAX TIP: Timing your capital asset disposals

DAILY TAX TIP: 

Timing your capital asset disposals.

The rate of Capital Gains Tax you must pay is linked to the amount of income you receive in the tax year. You may be able to reduce your capital gains tax by making sure that any gains you have (from investment property sales, share sales etc) fall into a tax year in which you have a lower level of income.

DAILY TAX TIP: Lifetime Pension Allowance.

DAILY TAX TIP: 

Lifetime Pension Allowance.

The maximum amount of money you can accumulate in a pension is called the lifetime allowance. Any excess over the limit is taxed at 55% if the excess savings are taken as a lump sum and 25% if taken as taxable income. The lifetime allowance is currently £1,030,000 for 2018/19.

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DAILY TAX TIP: Rent a Room Scheme.

DAILY TAX TIP: 

Rent a Room Scheme.

Rent-a-room relief applies to income from letting out a part of your own home. Income of up to £7,500 is completely exempt from income tax under this scheme.

DAILY TAX TIP: Use Marriage Allowance to Save £238 in Tax

DAILY TAX TIP:

Marriage Allowance lets you transfer £1,190 of your Personal Allowance to your husband, wife or civil partner. This can reduce their tax by up to £238 every tax year (6 April to 5 April the next year).

To benefit as a couple, you need to earn less than your partner and have an income of £11,850 or less (2018/19). Your partner’s income must be between £11,851 and £46,350 (England & Wales) for you to be eligible.

DAILY TAX TIP: Private Lettings Relief.

DAILY TAX TIP: 

Private Lettings Relief. If you sell an investment property that was at some point your main residence, and has been let out during your period of ownership, you can look to claim private lettings relief to reduce the amount of any gain that is subject to capital gains tax. The amount you can claim is the lowest of the amount of private residence relief, £40,000 and the amount of the gain that is chargeable by reason of the letting.