Treasury consultation on a statutory definition tax residence

An interesting article from Citywire on the proposals from HMRC with regard to imposing a statutory test for tax residency.

Pension - Fixed Protection

Anyone without primary or enhanced protection can apply for the new fixed protection. Individuals are only likely to need fixed protection if they think that their benefits from all registered pension schemes will be more than £1.5 million when they take their benefits. With fixed protection there are restrictions on further benefit
accrual after 5 April 2012.

Budget Guide 2011

Download our latest guide from here

EFRBS and EBT FAQ

HMRC release a FAQ document on disguised remuneration.

Income draw down rates reduce from April 2011

HMRC has released the new GAD Tables for 2011 which see the maximum income reduce from 120% to 100% in addition the tables create a lower income at certain ages.

Delay to pension income changes

The Government Actuary’s Department (GAD) may not be in a position to publish the revised tables of relevant annuity rates in time for the changes in April and in view of the delay, may state that the final cut off for when reference periods must use the new GAD tables will be the 5th June 2011. Providers may therefore be able to use the existing tables for reference periods starting before that date.

Residence, Domicile and the Remittance Basis

HMRC has published a revised version of  their ‘Residence, Domicile and the Remittance Basis’ document.
The amendments continue the shift towards emphasising the need to show a distinct break in the pattern
of one's life when seeking to break residence.

Unsecured Pension 5 yearly reviews – clarification from HMRC

Three Sixty LLP have received clarification from HMRC regarding the situation where a client in unsecured pension, requests a review now but their pension year does not commence until after 6th April 2011.
HMRC have confirmed that (as expected) although the request may have been made before 6th
April 2011, if the new reference period starts on or after 6th April 2011 then the new limits and rules will apply to the ongoing fund, i.e. three year cycle and 100% income limit.

All change for pensions.

HMRC have published a summary of the impending changes such as:

• the reduction in annual allowance
• the removal of the requirement to annuitise by age 75 and 
• early access to pension saving

Let us know if you would like a translation.

The return of "Carry Forward"

HMRC have now confirmed that an individual can carry forward unused annual allowance from any year (2008/09, 2009/10 and 2010/11) during which they were a member of a registered pension scheme, regardless of whether they made any contributions during that year or had a nil pension input amount during that year.

They have also confirmed that contributions must be paid into the same pension scheme and to obtain tax relief, earnings must support the contribution in the tax year that it is made.

UK Treasury tax relief review.

Under the microscope are 1042 tax reliefs, which include  inheritance tax relief and capital gains tax relief options. Which will survive only time will tell.

Extending Disclosure of Tax Avoidance Schemes

A package of five measures revising and extending disclosure of Tax Avoidance Schemes (DOTAS) was consulted upon following PBR 2009 and primary legislation was included in Finance Act 2010 (FA 2010). HMRC expect to be able to implement the package on 1 January 2011. However, some of the hallmarks (descriptions of schemes requiring disclosure) consulted upon will be implemented at a later date in 2011-12.

Double taxation Digest

Information from HMRC on double taxation agreements and in particular personal allowances for non-residents,