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Year End Tax Review 2005


Contents

Don't leave it to chance

Family tax planning

Tax payback - tax credits

Pay rise for the other half?

Jam today, or jam tomorrow?

Pension payments and tax relief

Employee pensions

Children's pensions?

Borrowings and tax

Investment limits

Employee cars and fuel

Give generously and save tax

Capital gains

Capital losses

Second homes

Company or trade?

Inheritance tax

Children's savings?

Business tax

Two jobs = too much NIC?

Should VAT be flat?

Mutiny and bounty

One careful owner

A matter of trust

Children's pensions?


"Stakeholder pensions" are available to almost anyone, regardless of having earned income. A contribution of £2,808 will be "topped up" by a tax refund of £792 from the Revenue to the insurance company, even if the policyholder pays no tax at all. Stakeholder pensions are also supposed to have very low charges.

Some people who want to make long-term provision for their children have set up such policies. Although the child will not see the money until the age of 50, an annual contribution of £2,808 from birth should provide a substantial fund by the age of 18 which would make a good start for the child's pension planning. The parent would not be subject to any inheritance tax on the contributions, so it would be more tax efficient than leaving a large legacy in a Will.

Action Point!
Is this something you might consider for your children?

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