- Individuals over the age of 55 given flexible access to their defined contribution (DC) pension savings.
- If an individual dies before the age of 75, they can now pass on their unused DC pension savings free of income tax. Beneficiaries of individuals who die under the age of 75 with a joint life or guaranteed term annuity can now receive any future payments from such policies free of income tax.
- Income tax personal allowance increases to £10,600 and the higher rate income tax threshold goes up to £42,385.
- New marriage allowance for couples comes into effect.
- The starting rate of savings income tax reduces from 10% to 0% for savings up to £5,00The cash ISA limit is now £15,240.
- Child Trust Funds can now be transferred into Junior ISAs.
- Spouses can now inherit their deceased partner’s ISA benefits.
- Employers no longer have to pay employer NICs for employees under the age of 21.
- Class 2 NICs for the self-employed now collected via self-assessment.
- New annual remittance basis charge of £90,000 introduced for non-domiciled individuals who have been resident in the UK in at least 17 of the last 20 years. The charge paid by non-doms who have been resident in the UK in at least 12 of the last 14 years is increased from £50,000 to £60,000.
- Non-UK resident individuals, trusts, personal representatives and narrowly controlled companies are now subject to capital gains tax on gains accruing on the disposal of UK residential property.
- Capital Gains Tax annual exemption amount has increased to £11,100.
- The CGT charge on disposals of properties liable to ATED extends to cover residential properties worth £1m to £2m.
The above list only covers the main changes and is only a summary. Changes in relation to Companies and corporation tax can be found at on the government website linked here.Should you require any further details on the items contained in this guide or tax advice in general, please do not hesitate to contact Harbour Key Limited. If you wish to sign up to our regular update please go to our website.
