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Related Special Reports
...Under UK tax law, shares listed on Aim can be passed to heirs tax free if they have been held for more than two years at the time of death....
...Payments into an Isa account are made from after-tax income, and the account is then exempt from income tax and capital gains tax on the returns. No tax is payable on money withdrawn from the scheme....
...So that £2,000 would be tax-free....
...thereby avoid paying UK tax on their foreign income and capital gains for up to 15 years....
...Any foreign income and gains generated by the trust will largely remain free of UK tax provided the settlor does not become domiciled here....
...Billionaires, aided by tax-dodging, pay lower effective income-tax rates than average American and French wage-earners, says the observatory. And wealth taxes barely exist....
...In last month’s Budget, the chancellor pledged to scrap and replace the 200-year-old tax regime that exempts non-doms from paying UK tax on foreign income, and capital gains for up to 15 years....
...By discussing where the money is reinvested and by changing the tax treatment of the income flows, the value of the interest payments could get up to €5bn a year, he said....
...Nor would there be an option to shield foreign assets from inheritance tax by setting up an offshore trust before April 2025....
...Regular gifts from your excess income immediately fall out of your estate for inheritance tax purposes. These can be used, for instance, to pay for grandchildren’s school fees....
...The children may well have all or part of their tax-free personal allowances or exemptions available, so this may be tax-free....
...The London-listed company posted a loss before income tax of £10.9mn, compared with a loss of £231mn in 2022....
...If they do, the dividends are subject to income tax....
...Based on how much they want to save and their income tax rate, parents must decide if it is worth taking a higher rate and a potential tax bill, or a lower rate that is free of tax....
...a new three-or six-month rates-free period....
...on their foreign income and capital gains....
...The UK is scrapping its 100-plus-year-old “non-dom” regime enabling wealthy foreigners to skip tax on overseas income....
...In a blow to current non-doms, the government said it would axe a common planning method for sheltering foreign income and gains in trusts before non-doms are deemed UK-domiciled after 15 years, from April...
...Dan Neidle, a tax lawyer and founder of Tax Policy Associates, said the capital gains Sunak reported suggested the prime minister’s trust manager had made significant disposals in the past three years....
...loophole for ‘non-doms’ — people who do not pay tax on income earned outside the UK because they are not classified as resident there....
...But in high-income countries, the top marginal tax rates on corporate income have declined in recent years....
...Venture capital trust investors are turning back towards the tax-efficient, high-risk asset class in a race to buy before the end of the tax year....
...Starting at zero, both trust and income rose together. But at around a self-reported trust level of seven, income peaked. A trust level of 10 is associated with income 7 per cent below that....
...In 2016-17 you could enjoy £5,000 a year in tax-free dividend income from assets outside a tax-free wrapper such as an individual savings account (Isa)....
...While such a trust may be efficient for inheritance tax, you should plan carefully to avoid double taxation on the trust’s income and gains. Can I challenge HMRC’s demand for payment?...
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