More over-65s pay additional-rate income tax

The number of pensioners paying income tax at the additional rate of 45% has increased over the past three years, government statistics show. In 2019/20, income tax is charged at a basic rate of 20% for annual income between £12,501 and £50,000, while the higher rate...

Capital gains tax changes to hit homeowners

More landlords and owners of second homes could have to pay capital gains tax on the sale of their additional property from April 2020, following a change to private residence relief. Private residence relief allows people to sell their main residence without...

Tax changes impact smaller landlords

Small-scale buy-to-let landlords have been worst hit by tax and regulatory changes to the private rented sector, according to the trade association for lenders. A report from the Intermediary Mortgage Lenders Association (IMLA) shows landlords with one property made...

OTS proposes inheritance tax reform

The Office of Tax Simplification (OTS) has proposed a second set of reforms to the inheritance tax system, to make it easier for taxpayers to understand. These include reducing the current seven-year period at which tax may be due on gifts to five years, and replacing...

Pension rules ‘cause confusion’ for higher earners

A restriction on pension contributions for higher earners is "causing confusion for taxpayers", mutual insurer Royal London has warned. Under the current rules, tax is due on pension contributions when they exceed the standard annual allowance of £40,000. However, a...