Introduction to Ryan Farr, Manager at A&M Taxand Scotland
We are delighted to welcome Ryan Farr to our M&A tax team in Glasgow.
Ryan has joined as a Manager and is a member of The Institute of Chartered Accountants in England and Wales and The Chartered Institute of Taxation.
Prior to joining A&M, Ryan spent five years at Deloitte LLP within the UK Business Tax group, advising clients on a wide range of tax related issues with a specific focus on corporate tax compliance and M&A tax.
Ryan will provide support to A&M Scotland’s Asset Manager team through advising investment funds on M&A tax matters including tax due diligence, acquisition structuring and tax modelling.
Personal tax year end considerations for individual Fund Executives
With the end of the 2021/22 tax year on 5 April 2022 fast approaching, now is the time for individual Fund Executives to consider end of year tax planning.
With this in mind, we have provided our top five tax year end considerations for individual Fund Executives to consider before the end of the 2021/22 tax year.
- Dividends
A 1.25% increase to the current dividend tax rates is set to take effect from April 2022 which will result in an increase to the basic rate for dividends to 8.75%, the higher rate to 33.75% and the additional rate to 39.35%. If possible, dividends should be taken prior to 6 April 2022 in order to take advantage of the lower tax rates in tax year 2021/22.
- Pension contributions
Pension contributions attract tax relief at marginal rates therefore Fund Executives could consider boosting pension pots and using up any available pension allowances prior to the tax year end. Unused allowances for the previous three tax years can also be brought forward meaning this is the last chance to make use of any remaining unused allowance from the 2018/19 tax year.
- Individual Savings Accounts (“ISA”)
An ISA is a tax efficient way to save / invest as returns received within an ISA are free of Income Tax and Capital Gains Tax (“CGT”). The ISA limit for 2021/22 is £20,000 therefore it may be worthwhile for Fund Executives to top up ISAs before the end of the tax year as any unused allowance cannot be carried over to the next tax year.
- Inheritance Tax (“IHT”)
In respect of Inheritance Tax (“IHT”), individual Fund Executives can give away a total of £3,000 worth of gifts each tax year without these gifts being added to the value of their IHT estate.
In addition, any amount unused from the prior tax year can be carried forward for one year only, meaning up to £6,000 could be gifted before the end of the tax year.
- CGT annual exemption
You cannot transfer or carry forward the CGT annual exemption (£12,300) therefore, if possible, capital disposals should be made prior to the end of the tax year in order to fully utilise the CGT annual exemption. It may also be beneficial to consider transferring assets to a spouse or civil partner in order to utilise their unused CGT annual exemption and/or capital losses.
Update on HM Treasury’s “Review of the UK funds regime: a call for input”
HM Treasury recently published a summary of the responses to the “Review of the UK funds regime: a call for input”.
Please refer to our A&M Scotland Asset Manager Briefing Note: Volume 9 from January 2021 which provides an overview of the “Review of the UK funds regime: a call for input”.
We will provide further detail on the “Review of the UK funds regime: a call for input - Summary of responses” in a future A&M Scotland Asset Managers Briefing Note.