Posts Tagged ‘UK Government’

Inheritance tax payments reach record high: how to protect yourself

Sunday, January 8th, 2017

inheritance-tax-forms

The amount of the money the UK government has received from inheritance tax (IHT) has reached £4.7 billion for the year ending 31 October. This is up 11.9 per cent from a total of £4.2 billion in the year ending 31 October 2015.

According to Wilsons, a law firm that specialises in private client law (among others), more and more people’s estates are leaving the tax free threshold behind due to the inflation in house prices, along with a freeze on the threshold level itself.

Essentially, owners of modest homes have found themselves being grouped with the rich.

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Britain’s economy could face £84bn black hole post-Brexit

Tuesday, November 29th, 2016

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Britain’s economy could face a black hole of £84bn ($102.3bn) by the time the Chancellor sets out his spending plans in the Autumn Statement next month, a think tank has warned.

According to a report from the Resolution Foundation, the deteriorating economic outlook, increased spending and lower tax receipts in the aftermath of Brexit could leave the government facing a shortfall until 2020-21.

The think-tank warned the Treasury would face a £23bn deficit at the end of the parliament, meaning the government would have to find a combined £84bn to balance the books over the next five years. However, the Foundation added, the only way to do so would be by implementing cuts or allow for extra borrowing.

George Osborne’s pledge to achieve a budget surplus by 2020 has already been abandoned by the government, which by then could be confronted with an economy £60bn smaller than it was expected to be before the referendum.

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UK support for Nissan may be costly, hard to calculate

Thursday, November 17th, 2016

Image result for Nissan UK

LONDON, Oct 27 (Reuters) – The support that the UK government has promised carmaker Nissan in return for building new models in Britain could prove expensive, but the Japanese carmaker’s complex structure makes it hard to estimate.

Nissan announced on Thursday it would build the new Qashqai and the X-Trail SUV in Sunderland, England, after saying in September it would only commit to new UK investment if it got a promise of compensation should Britain’s move to leave the European Union lead to new taxes on car exports.

Nissan’s main UK arm sells vehicles worth 5.3 billion pounds ($6.5 billion) a year, its accounts show. It says 55 percent of the cars go to Europe, suggesting exports of about 2.9 billion.

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One in four homes ‘now over inheritance tax threshold’

Saturday, October 1st, 2016

One in four homes 'now over inheritance tax threshold'

The government’s changes to the inheritance tax rules are good news as property prices continue to rise. New research has found that the number of homes that are worth more than the current inheritance tax threshold has reached a record high.When you die, inheritance tax is currently due on 40% of the value of your estate above £325,000, or £650,000 for married couples or those in a civil partnership. Saga Investment Services found that, so far in 2016, more than one in four properties were purchased at a value that exceeds the inheritance tax ‘nil-rate band’. This compares to 13% of properties in 2009 when the band was first set. The research highlights how the impending shakeup to IHT rules, which will see a new nil-rate band introduced in April 2017 for those passing on their main home to a direct descendant, is urgently needed.

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National Living Wage of £7.20 per hour comes into force for workers aged 25 and above.

Monday, May 16th, 2016

National Living Wage of £7.20 per hour comes into force for workers aged 25 and above

First announced by the Chancellor in his Summer Budget last year, the new National Living Wage delivers a key part of the government’s plan to move towards a higher wage economy.

In some parts of the country, a fifth of the entire workforce will benefit directly from today’s increase. It will mean a £900 cash increase for a full-time worker on the current National Minimum Wage and by 2020, 2.9 million workers are expected to benefit directly. The Office for Budget Responsibility (OBR) estimating that in total, up to 6 million people could see a pay rise as a result of a ripple effect causing pay to rise further up the earnings distribution.

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Reality Check: Has the UK given up its tax and banking veto?

Monday, May 16th, 2016

Reality Check: Has the UK given up its tax and banking veto?

The claim: The EU wants more control of UK banks and taxes and we have lost our veto over this.

Reality Check verdict: Britain has a veto over tax measures, but for some issues that affect UK banks and financial institutions can be out-voted by other EU members.

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