A light-hearted look at what you could be doing to ensure a prosperous new millennium.
- Spare a thought after the festive season for those less well off than you. This could be the time to give to charity and get tax relief under the Gift Aid scheme for amounts of £250 or over. Millennium Gift Aid is available for gifts of £100 or over to charities undertaking anti-poverty and education projects in 80 ‘low income countries’. (With effect from April 2000 these minimum limits will be removed, so that relief will potentially be available for all donations irrespective of size.)
- Used up all your wine stocks at your millennium party? Investing in wine can be capital gains tax free if the wine has an expected life of less than 50 years. The trouble is, most of us drink it before it ever has any investment potential!
- Company cars are getting expensive in tax terms and the benefit in kind charge is expected to rise further. Might you be better off having extra salary instead of a company car?
- Thinking of selling your business? The Chancellor indicated in his November Pre-Budget Report that (subject to detailed consultation) there will be changes to capital gains tax taper relief in his next Budget. It could be worth delaying the sale until after 5 April 2000, but it is essential to take advice as CGT is now a complex area.
- Have you looked at the split of assets between you and your spouse lately? An individual can have income of £32,335 before paying 40% tax so, if you are a higher-rate taxpayer and your spouse has a lower income, you may be able to transfer income-producing assets to him or her and reduce your family’s income tax bill.
- This is a good time to update your will or make one if you do not have one.
- The New Year is always a good time for a clear out so check if you have any valuable but unwanted assets which you could sell tax-free for up to £7,100, utilising the annual exemption.
For further information, speak to your usual KPMG tax contact.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.