Last chance to save some tax?

As we head into the winter months thinking of the forthcoming festivities, our tax team are eagerly anticipating the forthcoming Autumn Statement on 25 November 2015.

As you may recall, at the Summer Budget, the Chancellor made some unexpected tax changes, particularly to dividends. We have already explored the implications of these changes in our previous articles, however, it would be foolhardy to not consider that the Chancellor may introduce further measures in the Autumn Statement.

For example, as the new rules come into force on 6 April 2016, there is an opportunity to pay dividends (and be taxed at a lower rate) before 5 April 2016 i.e. before the additional tax comes into force. It is not beyond the realms of possibility that the Chancellor may try to counter this planning opportunity by introducing “anti-forestalling” measures to avoid this planning. It is unlikely but given the unexpected changes announced at the Summer Budget, nothing should be taken for granted.

Similarly, it was announced at the Summer Budget that the Chancellor was to review the tax relief on pension contributions. Once again it is not beyond the realms that this tax relief may be reduced or even extinguished at the Autumn Statement.

Our advice is to therefore consider paying both dividends and pension contributions prior to the Autumn Statement to be sure of the tax position!

As ever our tax team await your call. For Darlington call Alan Moore or Lee Watson (01325 349700), for Durham call Nicola Bellerby or Lee Watson (0191 384 2244) and for York call Alan Moore or Graham Richardson (01904 784400).