Latest Income Tax Articles Moving abroad to avoid the 50% rate of income tax The highest 'official' rate of income tax has increased to 50% as from 6 April 2010 (although there is a 60% effective income tax rate on income between £110K-£113K). In this article we assess how moving abroad can allow you to avoid the new 50% rate of income tax . . . keep reading What tax changes can we expect from the new Conservative-Liberal Government? The Conservative-Liberal Government have promised an emergency Budget within 50 days of coming to Government. This takes us to roughly the beginning of July. In this article we look at the previous Conservative comments and pledges to assess what could be included in the Emergency Budget as well as for tax year 2011/2012. This takes account of the Lib-Conservative coalition agreement issued on 12 May . . . keep reading 2009 Pre Budget Report Changes As expected there were few significant changes in the 2009 pre budget report and it looks as though they won't make the major tax hikes until after the next general election. In this article we revierw some of the key changes as they may affect our members. . . . keep reading UCITS and UK tax We've had some queries from members asking how UCITS funds are taxed. In this article we look at the UK tax implications of investing in both UK and overseas UCITS funds. . . . keep reading Using an LLP corporate partnership structure to reduce tax on trading profits With the rise in the rate of income tax from 40% to 50% next year using a corporate partner/LLP structure could be an option for traders looking to reduce tax. . . . keep reading Tax advice on CFD's Question: I have read a lot of information on your web-site and am a bit confused about whether my CFD buying would be treated as an "investment" or "trade". I am a full time Sch E employee in a bank earning c£100k p.a. Throughout this year in my spare time I have invested a significant amount in CFDs. I have built up a sizeable CFD position of c£1.6m (across about 30 different companies) and I currently have realised a significant unrealised profit of c£400k. I also have realised losses of c£60k from Q4 last year. I would classify myself as an investor because I plan to hold the CFDs for the long term (rather than a series of short term trades), and have not really sold any of my CFDs (other than some small holdings that were sold due to stop-losses being activated etc). Given the above circumstances, do you think HMRC would view me as an investor or trader? . . . keep reading Using a company to reduce tax on forex/share trading One of the most popular tax planning questions for forex or other financial traders is 'Should I use a company to reduce tax?'. This article looks in detail at when using a company is beneficial for forex and share traders/investors to reduce their UK taxes . . . keep reading Tax for non UK domciliary 'trading' overseas stocks Many non UK domiciliaries are living in the UK and investing in both UK and overseas shares/stocks. Assessing the UK tax implications will be crucial. This article looks at the tax treatment of and UK tax planning opportunities arising from non UK domiciliaries investing or trading in overseas stocks . . . keep reading UK tax on a bear call spread A bear call spread is a popular trading style where you have a negative, bearish view of the market. This article looks at the income/capital gains tax implications of a bear call spread . . . keep reading UK tax on a strangle option strategy Strangle options are primarily a method of retaining exposure to potentially favourable movements in a share price whilst also limiting the potential risk. It is achieved by buying a combination of puts and calls. This article focuses on the UK tax implications of a strangle option trade. It includes example illustrating how UK tax is calculated . . . keep reading Overseas interest & deducting UK tax at source In some circumstances you'll need to deduct UK tax at source from interest. Where the provisions apply you'll need to deduct basic rate tax (20%) and account for this to HMRC. In this article we look at the nature of the deduction at source provisions and how to avoid tax being deducted . . . keep reading The new ISA limits for over 50's from October 2009 As from October 2009 the ISA investment limits increase for anyone aged over 50. In this article we look at how these changes apply and key considerations for traders and investors . . . keep reading Non Dom Traders and overseas bank accounts Non Dom traders may well have an overseas bank account. Where this contains different income sources or a mixture of taxable income and tax free capital the rules governing the extraction can be difficult. In this article we look at tax planning principally for interest for non doms with overseas bank accounts. . . . keep reading How traders can use a corporate partnership to avoid the new 50% tax charge Many traders will see their tax bills increase substantially with the advent of the new 50% rate of income tax from April next year. In this article we look at how using a partnership/LLP structure with a corporate partner could substantially reduce the UK tax liability on trading profits . . . keep reading Using an offshore company for forex trading/investing to reduce tax One of the most common questions we have is whether as a UK resident you can use an offshore company to trade or invest in forex & reduce your UK tax charges. This article looks at how using an offshore company to trade or invest in forex is taxed in the UK. It considers the position for UK resident domiciliaries and non UK domiciliaries . . . keep reading Avoiding UK tax on trading profits by going abroad as an employee of your own company If you're looking to avoid tax on your trading profits establishing yourself as non UK resident is one of the most effective options. Actually establishing non residence isn't straightforward. In this article we look at one possible route to achieving non residence for just one tax year by going abroad as an employee of your own company . . . keep reading Tax treatment of Euro Bonds Following an e-mailed question we've looked at the tax treatment of Eurobonds in this article. In particular we've looked at the capital gains tax and income tax treatment . . . keep reading Tie Breaker Clauses and Establishing Residence Overseas If you're looking to leave the UK and establish non UK residence under the terms of a double tax treaty, the chances are you'll need to utilise the tie breaker rules to establish treaty residence overseas. This article looks at the interpretation of the tie breaker rules and how they apply to traders looking to establish non UK residence . . . keep reading Common tax planning Q&A's for forex traders & investors Anyone new to trading or investing in forex will want to know how they'll be taxed in the UK on any profits or gains they make, how they'll get tax relief for any losses and tax planning opportunities. Here's some of the most common tax Q&A's for forex traders/investors? . . . keep reading 10 Ways For Traders To Avoid the New 50% Rate of Income Tax The new 50% rate of income tax that applies as from 6 April 2010 will affect many high income traders. It will effect not only self employed trading income but also interest, dividends as well as salary income and other investment income (eg rental profits). In this article we look at some of the tax planning options to avoid the new 50% tax rate . . . keep reading