Somehow I doubt that Bob Dylan was talking about the start of a new tax year when he wrote the original but the sentiment rings very true.
The tax rules change every year; sometimes several times throughout the year and, while there will always be winners and losers from these changes, those who can adapt to the change can make the most from it.
It was announced some time ago that more inheritance tax (IHT) relief will be available on the main family home. Previously, where your estate was worth £325,000 or less, no IHT was payable on your death. This amount is transferrable between spouses and civil partners, so a married couple could have an estate of £650,000 between them without incurring an IHT charge. From April this year, an additional amount is available in respect of the deceased’s main residence. This starts at £100,000 per person, rising to £175,000 by April 2020 and is again transferable between partners.
Landlords have experienced a number of changes recently, including the abolition of the 10% ‘wear and tear’ allowance which simplified expenses. From April this year they will also begin to have their tax relief on loan interest restricted.
From April next year many taxpayers will be required to report on their businesses on a quarterly basis rather than all at the year end. This applies to landlords as well as traders and increases the administration requirement of being in business. This is part of an overall strategy to digitise our country’s tax administration – you may already have logged into your personal tax account which may give a flavour of the way this is moving forward.
n Contact Sarah Clyde at our Boston office by emailing email@example.com or calling 01205 310 250.