Accountants working to solve 50 per cent tax demands

Many accountants have been working ’around the clock’ to help protect the personal wealth of their clients from the new income tax increase, which came into force today (April 6th).

This is according to a report in the Financial Times, which noted a number of firms, including Deloitte, have observed an increase in activity at the end of the financial year from individuals wanting to minimise the impact of the new tax.

Those earning over £150,000 are now being charged a 50 per cent levy on their income and some have opted so move some of their investment assets into their hands of a lower-earning husband or wife in an effort to avoid paying the top tax rate on their dividends.

Many waited until after the Budget had been announced late last month in order to see if any more tax changes would be revealed, which created a last-minute rush to mitigate the effects of the new charge.

Last month, research from the Association of Investment Companies showed tax rises are seen by investors as the biggest barrier to them receiving returns on their private wealth in the lead-up to the general election.ADNFCR-2318-ID-19705146-ADNFCR