Following the latest Budget speech, UK individuals now face tax charges on their income up to a maximum of 50 per cent. It has therefore never been so important for couples in a civil partnership to review their position.
Nick Tagg, director of Wisteria Chartered Accountants and a chartered tax adviser, said: “Since the end of 2005, couples in a registered civil partnership have enjoyed the same tax rights as a husband and wife. The recent increases in tax rates mean that it is now more important than ever for registered civil partners to review their tax position.”
While there is no doubt that tax is high on the agenda in the upcoming election, the UK budget deficit means that the increases in tax which took affect from April 6th 2010 look likely to remain. The increases in National Insurance Contributions that are due to come into effect from 2011 are more up for debate, but with a 50 per cent tax rate in place for the highest earners already, the damage is already done.
Mr Tagg said that gay couples should be “looking at their position as a whole”.
He added: “The better use of tax allowances, income splitting and the transfer of income producing assets has the potential to offer thousands of pounds in tax savings each year. Individuals and their advisers need to be looking at this even more closely than in the past, otherwise gay taxpayers could be facing tax bills higher than ever before.”
“Through Wisteria Formations we have seen an increase in activity with more gay couples looking to start their own businesses and this is a key time to look at couple’s tax position. A chartered tax adviser or chartered accountant should be able to help you to minimise your tax bill and make the most of your entitled allowances.”
Disclosure: Wisteria provides corporate accountancy services and advice to PinkNews.co.uk’s parent company.