Tax Tip # 4 PLANNING FOR AN INCOME OVER £100,000

Mar 17, 2016 | Tony Byrne's View

If you have personal income over £150,000, this is currently taxed at 45%. The situation is however worse than this, as the personal allowance is reduced by £1 for every £2 of net income over £100,000. This means that any income between £100,001 and £121,200 will have an effective top rate of tax of 60%.

If your income is near these levels, it is possible to reduce your tax liability by reducing your taxable income below £100,000 or £150,000. One way you can achieve this is by passing income yielding assets to a spouse with lower income. Another strategy is to change income producing assets into non-income producing assets.

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