Moore Kingston Smith: Spring 2022 Bulletin
As we were finalising our Spring Bulletin, what should have been a momentous development — the gradual lifting of Covid restrictions around the UK — has taken a back seat. The Russian attack on Ukraine at the end of February now dominates the news agenda and our thoughts. While the suffering of the Ukrainian population, and millions of refugees fleeing their homes, are of paramount concern, the ramping up of sanctions imposed on Russia by the West are likely to have a wider effect beyond the region.
Even before this latest crisis the economic fallout from the pandemic is hitting home. Rising inflation coincides with the increase to National Insurance contributions and dividend tax slated to come in from 6 April, all of which contribute to concerns on the rising cost of living. We cover these issues in our first newsletter for 2022. Our first feature considers how gifting from income can help you structure your estate planning the light of frozen inheritance tax thresholds and the Chancellor’s decision to keep the tax broadly unchanged.
Features in our Spring Bulletin include:
- Counting cost of the frozen tax landscape. We consider the strategies to minimise the impact of the national insurance and dividend tax rises and tax threshold freezes. Those nearer the threshold boundaries can benefit most.
- Lasting power of attorney clause change re-investments welcome. It has a complicated back-story, which we summarise within our article.
- Who gets to choose when you retire? Research by Aviva reveals the UK’s most popular age for early retirement is 60. With the State pension age still under review, is your retirement plan set up to achieve this?
- Tax loophole closing on second homes. Second home owners in the UK have been able to declare an intention to let their property to access small business rates relief and avoid paying council tax, but from April 2023 they are going to have to provide evidence.
- HMRC urged to reform child benefit tax. Are you one of the many couples impacted by this tax legislation, but do not realise?
Mortgage market update. This year has seen a turbulent start when it comes to mortgage rates and the demand for longer-term fixed rates has increased substantially over the past six months. Can we help?
We are happy to discuss anything arising from the topics addressed in our bulletin. Our next edition will be with you in the summer.