Income realised before 5 April will be taxed at 40% therefore representing a 10% saving for top rate tax payers. With just under one month to go before the new top rate of income tax comes in for those earning £150,000, consider restructuring the ownership of income assets with spouses or civil partners to avoid either of you earning £150,000. As an alternative you could switch to a Capital Growth strategy where gains are currently taxed at 18% (but bear in mind this rate is tipped to change or could change). HMRC are looking closely at the timing of dividend payments. If not robust, they may argue the dividend was paid in 2010/11.

Call Mark Busby NOW on 01344 620495 or email your Enquiry for the latest information.