February 2018 Newsletter : Cylchlythyr Misol Chwefror 2018
- The new Welsh Revenue Authority commences on 1 April 2018. There will initially be 2 new taxes, a Land Transaction Tax and a Landfill tax. The Land Transaction Tax replaces Stamp Duty. Broadly higher taxes will be paid on properties over £400,000. Income tax powers for Wales start in 2019.
- Company directors be aware that the tax free level of dividends is decreasing from £5,000 to £2,000 from 6 April 2018.
- For those not yet retired, check your state pension to see if you are entitled to the maximum state pension. Many people are not, especially employees of large corporations / public sector workers who may have been contracted out of the state scheme. Telephone 0800 731 0175 and request a State Pension Forecast. You may be able to buy added years.
- A brief guide to the process of probate. After the death of a loved one, there is much paperwork to be administered. With many clients, this involves two detailed meetings. The first works out the assets of the deceased and contacts the various companies to obtain valuations and details for the closing of the savings accounts.
A few weeks later, when the information is available, the second meeting involves the preparation and submission of the Probate application form and the Inheritance Tax Return, which will need to be completed even if no Inheritance Tax is payable. The Probate form is issued a few weeks later which allows for the sale of assets and property, followed by the distribution of the estate.
- Most of my work in January was preparing tax returns for the 31 January deadline. One day in early February provided plenty of variety including Inheritance Tax calculations and a will review, the re-negotiation of a property lease, discussing pension plans, a claim for a significant tax rebate, arranging the sale of a property where I have financial Power of Attorney for an elderly client and tax queries for a self employed client.
- Hopefully all of you will have kept away from the temptation of Bitcoin. Those who speculate last in a bubble / pyramid scheme will lose the most.