Tax Services from Coutts

Coutts tax return service is designed to make the preparation of your tax return as smooth as possible. Together with your private banker, we can usually collate most of the paperwork required for your tax return, without you having to get involved.

We will keep you up to date with tax efficient planning opportunities, whilst ensuring that you do not miss crucial deadlines.

Furthermore, we can communicate with HM Revenue & Customs (HMRC) on your behalf and arrange for your tax liabilities to be paid directly from your Coutts account.

Should you be considering buying or selling an asset, for example, private company shares or a second property, Coutts tax specialists can advise you on the most tax efficient approach. We also have specialists who can provide advice when there are residency or domicile factors to consider.

In addition, we have tax specialists who can provide tax advice on tax shelters. Whilst we do not promote high-risk strategies, we make it our business to understand these strategies so that we can advise our clients appropriately.

Being self-employed carries additional tax reporting duties. All of the following will have to be considered when you become self-employed:

• Registration with HMRC
• Record Keeping
• Liability to Class 2 and Class 4 National Insurance
• Possible VAT liability
• Preparation for future tax liabilities.

From the calculation of the class 2 and class 4 National Insurance liability, to arranging for your tax adjusted self-employed accounts to be completed, Coutts Tax Service will be able to help those who are setting up their own business. We will also be able to advise on any appropriate tax planning opportunities that arise.

First, you will need to think about whether both properties will be used as proper homes or whether one of them is really a holiday home. If only one is your home then any gain on sale of the other will be subject to Capital Gains Tax. If both qualify as homes then you should elect for one of the properties to be your principal private residence, for CGT purposes. This election must be made to HMRC within a specific time period. Coutts Tax Service will be able to help you with this election and make sure that it is made on time. We will be able to calculate the potential tax and make sure that all possible claims and reliefs are taken into account in order to minimise the tax liability.

Domicile is a concept of English Law. It is determined by individual facts and circumstances but usually (though not exclusively) is the country which you regard as your permanent home. This means that you may be living and working in the UK but have a domicile in another country. Domicile is quite different from residence since it rarely changes in the way that residence does. In most cases, a person takes the domicile status of their father when they are born. A person’s domicile status can change during their life, initially depending on their father’s choices, and later their own intentions. There are no hard and fast rules as to how to evidence a non-UK domicile status, and each case is determined on its own merits.

There are various tax points that must be considered by non-UK domiciled individuals and which can be complex. Coutts can provide advice on these tax issues, including providing advice on how best to structure your UK and offshore assets to avoid potential problems or complications.

UK Emergency Budget 2010

Immediate Capital Gains Tax rate increase for higher rate taxpayers.

Read more. . .

Pre Budget Report – 9 December 2009

Despite many predictions to the contrary, the rate of capital gains tax remained unaltered and the PBR contained very few surprises.

Changes to the Personal Allowance

The basic personal allowance will remain at £6,475 for the 2010/11 tax year. Where an individual’s income is below £100,000 they will continue to be entitled to the full personal allowance. However, where an individual’s income is above the income limit of £100,000, the allowance will be reduced by £1 for every £2 of income in excess of £100,000. Therefore, if an individual has income in excess of £112,950, they will not be entitled to a personal allowance.

A New Top Rate of Income Tax

On 6 April 2010, a 50% rate of income tax is to be introduced for individuals with income in excess of £150,000. Dividends otherwise taxable at this new 50% rate will be taxable at a new rate of 42.5%. Individuals who are likely to be subject to the 50% rate of tax should take specific tax advice in order to ascertain if there is any legitimate tax planning that can be undertaken to mitigate the impact of the new rate.

Mansworth v Jelley

In May 2009, HM Revenue & Customs revised its previous guidance, which was issued following the Mansworth v Jelley (M v J ) court case, on how to calculate the allowable loss on the disposal of shares acquired on the exercise of share options. The revised guidance only applies to share options exercised prior to 10 April 2003. In September 2009 a further briefing notice was issued in order to offer more clarification. This briefing notice provided some examples of when such losses would be available and when they would not. If you believe you have such losses, you should check with your tax adviser to confirm if these losses are still available to you.