Following the UK Election results, we have summarised the key tax changes below that will come into effect from 6 April:
- The income tax personal allowance has increased to £10,600
- The higher rate income tax threshold has increased to £42,865
- The starting rate of savings income tax reduces from 10% to 0% for savings income up to £5,000
- The ISA limit increases to £15,240
- Spouses can now inherit their deceased partners ISA benefits
- Class 2 NIC’s for the self-employed can now be collected through Self-Assessment
- Child Trust Funds can now be transferred into Junior ISA’s
- Individuals over the age of 55 have flexible access to their defined contribution pension savings
- If an individual dies before the age of 75, they can now pass their unused defined contribution pension savings free of income tax
- Beneficiaries of individuals who die under the age of 75 with a joint life or guaranteed term annuity can now receive any future payments from such policies free of income tax
- The new Marriage Allowance comes into effect
- A new annual remittance basis charge of £90,000 is introduced for non-domiciled individuals who have been resident in the UK in at least 17 of the last 20 years, and the charge paid by non-domiciled individuals who have been resident in the UK in at least 12 of the last 14 years has increased from £50,000 to £60,000
- Non-UK resident individuals, trusts, personal representatives and narrowly controlled companies are now subject to Capital Gains Tax on gains accruing on the disposal of UK residential property
- Capital Gains Tax annual exemption has increased to £11,100
- Simplifications of share scheme rules for Internationally Mobile Employees
An end to the four year cap for making an overpayment relief claim
The Upper Tax Tribunal has ruled that HM Revenue and Customs has no general right to refuse a taxpayer’s claim for a refund of overpaid tax going back more than four years.
This change was brought about by the case of Higgs vs HMRC, 2015 UKUT 92 TCC.
Whilst in practice this is still to play out, it means that in theory you can now go back more than four years to reclaim overpaid tax.