Tax voice - October 2017

This month’s tax voice features the impact of 2016 changes to the pension annual allowance, higher tax charges on distributions from solvent liquidation, hybrids and cash risk, and what you need to know about the new finance bills.

The impact of 2016 changes to the pension annual allowance

20 October 2017

From 6 April 2016, the amount that can be contributed into an approved pension scheme each year (ie the annual allowance) for tax relief purposes has been reduced from £40,000 to just £10,000 for individuals whose ‘threshold income’ exceeds £110,000 and ‘adjusted income’ is more than £210,000 per tax year.

A bit of a wind-up

20 October 2017

Higher tax charges on distributions from solvent liquidation where company’s activities are continued by shareholders.

Hybrids and cash tax risk

20 October 2017

The new hybrid mismatch rules have been effective since 1 January 2017 to target what HMRC describes as ‘aggressive tax planning’. As with any new legislation, there is inevitably some question about how the law will operate.

Two finance bills in five days - what you need to know

20 October 2017

The unprecedented occurrence of two finance bills issued in five days may suggest a plethora of new tax changes are on their way. In truth, few new measures have been revealed, but those that have been announced could have significant consequences for those affected.