Private clients

We cover the 50% tax rate, potential changes to CGT rates and issues related to income shifting.

Anti-avoidance and the 50% additional income tax rate
When the 50% additional rate was announced the Chancellor also made it clear that he expected taxpayers affected by the new top rate to look for ways round paying it and so he would set HMRC and the Treasury the task of framing anti avoidance rules.

What will happen to CGT rates?
We have noted above the likelihood, almost certainty, that anti avoidance rules will be announced that target conversion of income to capital.

Income shifting and settlements: will HMRC finally catch up with the Joneses?
Ever since HMRC (then the Inland Revenue) lost the case of Garnett v Jones in the House of Lords Revenue & Customs, Revenue & Customs have been looking for ways to stop owners of family businesses sharing income around their families instead of seeing it taxed only on the business's principal earner.