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Highlights of this month’s Better Planning: Personal and Business Tax Update
SPEAKERS
- Robert Jamieson partner Mercer & Hole
- Paul Howard director Gabelle LLP
Pension payment trap
The annual cap on income tax reliefs is set at the greater of £50 000 and 25% of the taxpayer’s income calculated after deduction of tax-relievable pension payments and charitable donations.
Robert Jamieson warned that where large losses have already arisen in 2013/14 the taxpayer’s pension contributions for this year need to be carefully monitored to ensure that loss relief is not restricted unnecessarily.
Carried-back loss
The tax relief cap applies to losses arising on and after 6 April 2013 even where those losses are carried back to an earlier tax year.
Robert explained how the cap could operate in the taxpayer’s favour by preventing the waste of the personal allowance and/or basic rate band in the...
