February 2021 Newsletter | Cylchlythyr Misol Chwefror 2021
A year has flown by since launching Huw Aled Accountants and we thank you all very much for your continued support.
We have provided tax advice to our clients on numerous issues, but recently, we had a 48-hour period of unusual transactions arriving on our desks, including:
- Advising an NHS doctor on tax charges arising on exceeding annual and lifetime pensions allowances
- Assessing inheritance tax due on a discounted gift trust
- Calculating capital gains tax on the sale of a complex share portfolio
- Contacting an Italian solicitor regarding a deceased British citizen's property in Rome
- Evaluating whether ex-demonstrator cars still qualified for full capital allowances
- Arranging the sale of a Cardiff property for a deceased client's family's estate where the beneficiary lives overseas
- Claiming nil rate band relief for a deceased couple on their family home left to their children, enabling the estate to receive up to £1,000,000 free of Inheritance Tax
The Welsh Government's Cultural Recovery Fund has received additional funding. A second round of grants of £2,500 are available. If you were a recipient from the first round, you will automatically receive this second payment, subject to certain conditions. These conditions include that you have not separately claimed funding from the Local Discretionary Grant from your local authority.
As a result of the continued Covid restrictions, local authorities have re-opened their Local Discretionary Grants. A second round of grants are available of up to £2,000. Recipients from the first round of funding in December/early January may still be able to apply for a second time.
Visit the Business Wales website for full details, including the eligibility criteria:
https://businesswales.gov.wales/coronavirus-advice/support/financial-support-and-grants
On Thursday 4 March, we will be hosting two online presentations to dissect the Chancellor's Budget (9am: English language presentation; 11am: Welsh language presentation). Those on our mailing list will receive links to these events and full details will also be made available on our website in due course.
Ask Huw & Aled: are there any actions that I can take ahead of the Budget that could potentially save tax?
There are three areas of potential change ahead of the Chancellor's Budget on 3 March:
- Capital gains tax rates: these may rise to 20% and 40%, aligning them with income tax rates. If you are considering selling an asset, you may wish to complete this transaction before the Budget.
- Tax relief on pension contributions: if you are considering making a large pension contribution before the end of the tax year, you may wish to proceed ahead of the Budget. Please contact us if you wish to discuss any matters.
- Tax-free gift allowances: make gifts up to your inheritance tax allowance of £3,000 for this tax year and £3,000 for the previous tax year, if unutilised. Potentially this is £6,000 for an individual and £12,000 for a married couple.
