Tax Systems Share Discussion Threads

[skyship] 20/3/2014 18:19

S - "GAD rate has almost halved since those of us took out our first drawdown."

Jeez Sue - When did you make your first drawdown? Mine was in 2003 and I don't recollect any GAD changes since then - other than the temporary reduction from 120% to 100% in 2012.

[smarm] 20/3/2014 14:40

Skyship - yes but remember that the GAD rate has almost halved since those of us took out our first drawdown. I was set to lose about 40% of my pension income in 2015....something had to be done.

S

[miata] 20/3/2014 08:51

New rates of Vehicle tax:

[miata] 19/3/2014 18:47

Government Actuary's Department tables or GAD rates determine annual income for drawdown.

[skyship] 19/3/2014 18:41

Incredible budget for pensioners and savers.

For those of us in Income Drawdown from a SIPP - FANTASTIC. GAD rate up from 120% to 150% - a 25% hike in my pension limit!

[goatherd] 19/3/2014 18:20

Well I thought that it was the most exciting budget for many years [perhaps ever].
Lots of new ideas. Good national performance.

[miata] 19/3/2014 17:41

G.O.
"I want to help savers by dramatically increasing the simplicity, flexibility and generosity of ISAs. We will make ISAs simpler by merging the cash and stocks ISAs to create a single New ISA. We will make them more flexible by allowing savers to transfer all of the ISAs they already have from stocks and shares into cash, or the other way around. And we are going to make the New ISA more generous by increasing the annual limit to £15,000. £15,000 of savings a year tax free – available from the first of July."

[smurfy2001] 19/3/2014 17:03

So it will still be two ISA's then?

[miata] 19/3/2014 13:23

Basic rate tax allowance to rise to £10,500 next year.

Higher rate threshold to rise to £41,865, and then another 1% next year.

'New ISA' (NISA) with annual contribution limit of £15,000 from 1st July.
From 1 July 2014, your existing ISA will automatically become a NISA, with a
higher limit and more flexibility. Thereafter you can then add further money to
either your Cash or Stocks and Shares NISA, up to the new £15,000 limit.
From 1 July 2014, any money you have in a Stocks and Shares NISA can be
transferred to a Cash NISA.

Air Passenger Duty - abolish bands C & D.

Drawdown restrictions on pensions removed, no one will have to buy an annuity, free impartial face-to-face advice.

10% savings rate to be abolished. Changed to zero percent.
The starting rate of savings tax to change from 10% to 0% and the threshold for this rate to be increased from £2,880 in 2014-15 to £5,000 of savings income above the personal allowance. This measure will take effect from 2015-16.

[smurfy2001] 19/3/2014 09:56

OK so l will get taxed less but could end up paying more NI? ;-)

[miata] 19/3/2014 09:02

BUDGET DAY

Already announced:
The personal allowance is due to rise to £10,000 from April 6, 2014.
The higher rate threshold will increase by 1pc from £41,450 to £41,865.
Corporation tax due to drop to 21pc in April and 20pc next year.


Watch out for:
Adjustments to Class 2 National Insurance
Gaming tax changes
Air Passenger Duty - the highest air tax in the world
ISAs

[jeffian] 11/3/2014 22:08

Thanks, M.

[miata] 11/3/2014 20:40

Doesn't sound normal to me, but I know there are some exceptions to the general rule that gilts and loan capital are exempt from SDRT.

 Loan capital which can be converted into ordinary shares or other securities or which carries a right to acquire shares or other securities including loan capital of the same description. Section 79(5).

 Loan capital which carries a right to interest which exceeds a reasonable commercial return on the nominal amount of the capital. Section 79(6)(a).

 Loan capital which carries a right to interest linked to the profitability of any company or the value of any property. Section 79(6)(b).

 Loan capital which carries a right on repayment above par and which is not reasonably comparable with what is generally repayable under the terms of issue of loan capital listed on the London Stock Exchange. Section 79(6)(c).



You could look up 'The Stamp Duty (Exempt Instruments) Regulations 1987' (SI 1987/516) for more information, or contact the company secretary of Enterprise Inns Plc or the HMRC Stamp Duty Reserve Tax helpline 0300 200 3510 (try between 12 and 2pm - less busy) or email [e-mail]

[jeffian] 11/3/2014 18:50

Hi, MIATA. Does your encyclopaedic knowledge of all things tax run to SDRT? I hold Corporate Bonds in my portfolio to provide a stable base income and although I don't trade regularly, I occasionally sell if they rise to a good premium above par and replace them with something closer to, or below, par. I haven't been charged SDRT on purchases before and always understood that they were exempt (as they are from CGT). Yesterday, I switched out of the ETI 6.875% 2021 bond and switched into ETI 6.375% 2031 - and got charged SDRT on the purchase. When I challenged Hargreaves Lansdown about this, this was their response -

"Corporate Bonds are liable to stamp duty on a case by case basis. All securities that we trade must settle within CREST and we have been informed by them that this bond is liable to stamp duty and have been charged accordingly on the transaction. The ultimate decision on liability lies with HMRC."

Doesn't sound right to me. Any comment/help?

TIA

[miata] 11/3/2014 18:04

Yes.

Mr Balls is planning a £6bn tax raid on bankers' bonuses and London property owners to try to raise funds for new job creation schemes. His proposed tax on properties worth more than £2m is expected to raise at least £2bn a year.

Deloitte previews Budget 2014

[jeffian] 11/3/2014 17:51

Is MIATA back yet?

[dewtrader] 02/2/2014 17:03

if a payment on account is made a day late do you get penalised?

[smurfy2001] 02/2/2014 16:59

MIATA - Hope you're having a nice break :)

[skyship] 02/2/2014 16:24

MIATA - hope you're having a good holiday in the sun - far away from the WET,WET,WET that is Europe at the moment!

[miata] 02/2/2014 15:15

MIATA is away.

[skyship] 02/2/2014 12:22

MIATA - I posed a question on the FTAX thread. Do you happen to have an answer to that one?

[smurfy2001] 26/1/2014 13:17

Hi Miata,

One of my properties has been repaired/renovated, a flat above a commercial property. I've never used the %10 wear and tear allowance as l don't provide any furniture.

This includes,
- Roof repair
- Pointing
- Bricks replaced
- Replaced drain pipe
- Replaced boiler and radiators
- Replacement carpet/lino
- Re-plastering
- Interior painting
- Replacement kitchen
- Replacement bathroom
- Re-wiring including replacing sockets and switches

So this old flat that was uninhabitable has not been renovated/repaired as new.

As it was being rented (to non-professionals), I've been careful not to improve anything being replaced. So the boiler is not better for example.

For 2013-2014, profit from rent will be £10K with repair/renovations costing £15K.

1/ Do you know where can l find out what l claim back? As l fill in a Self Assesment, l couldn't find out much detail on what is allowed.

2/ Given l will make a loss, can l carry this forward to reduce tax on 2014-2015?

I have claimed back roofing repair and replacement front door/windows before without issues.

Many thanks,
Smurfy

[miata] 19/1/2014 11:43

You don't mention where you are tax resident.

As you are likely to be taxed on the income in the country you reside and that country probably has a double tax treaty with the UK it may not be worth expending much effort unless the tax rates differ markedly.