As we were finalising the Spring edition of our newsletter, the world watched aghast as Russia invaded Ukraine. Having spent two years consumed with the worldwide transmission of Covid-19 and the resultant disruption to our lives, what should have been momentous developments – the gradual lifting of restrictions around the UK – has taken a back seat. The Russian attack on Ukraine at the end of February now dominates the news agenda. While the suffering of the Ukrainian population, and millions of refugees fleeing their homes in fear for their lives, 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, and despite the hopes for many of almost getting back to ‘business as usual’, the economic fallout from the pandemic is hitting home this year. 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 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.
Other stories for this edition 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.
- 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.
As we watch the mounting carnage in Ukraine and seek ways to help the humanitarian relief effort, it may seem difficult to focus on these issues nearer home.
We are happy discuss anything arising from the topics addressed in our newsletter. Our next edition will be with you in the summer.