Lambert Chapman LLP’s Paul Short considers the death knell for Child Benefit

There has been much press coverage of the Coalition’s intention to end child benefit for higher rate tax payers from 2013.

 It is likely to be sudden death.  If you are a higher rate tax payer in the relevant year, you will lose the relief.

It is worth over £1,000 per child, so it will be very useful to some of our clients with 2, 3 or more children qualifying.

Lambert Chapman LLP will be reviewing the position for our clients over the next year and will advise of any possible actions which might be taken to retain the benefit.

This may, for example, be the transfer of capital for one spouse to the other spouse or partner to prevent higher rate tax exposure on one of them.

Owner/managers may be able to accelerate income into 2010/2011 and 2011/2012 to avoid higher rate exposure in 2012/2013.

The devil is, of course, in the detail so we will be watching developments closely to see what the Government do put forward and we will be amending our strategies accordingly.

We are also seeing a restriction in the relief available in respect of childcare vouchers, restrictions on the amount of qualifying pension contributions one can make in a year and also national insurance increases.  Again we will be shaping our advice as the precise measures are established.

We are keen to hear from business owners, in particular, who are concerned that they may be affected by the changes and need to recalibrate their income but may not yet have received advice on this point.  Equally we would like to hear from other professionals who might need advice themselves or who have clients needing advice. Please call Paul Short on 01376 326266 in the first instance.

Lambert Chapman LLP’s Gill Philpott suggests where there’s a Will there’s a way!

The BBC are showing a new 6 part series starting 9pm Friday 14^th January on BBC2 on the effects of not having a Will in place called “Can’t Take It With You“.

But why have a Will – because if you do not have a Will in place before you die your estate will under the rules of intestacy and this means that your property may not go to the people you would like it to go to.

So having a Will can make sure your wishes regarding your property are carried out and you can decide to whom you want your property and assets to go to. 

Writing your Will goes hand in hand with inheritance tax planning.  This can help in saving tax and maximising the value of your estate left to your beneficiaries.

Re-visiting your Will and amending it’s terms for changes in your circumstances also provides and opportunity to consider your tax position.

Lambert Chapman LLP can help and we have a Brief Guide to Inheritance Tax which can be obtained by emailing or calling us on 01376 326266.

Having read this if you want to know more or do some tax planning give Chris Harman or Gill Philpott a call on 01376 326266 to make a mutually convenient appointment

Our “War on Debt” begins

It’s been a frustrating few days while we’ve sat and waited to hear the outcome of talks with the Liberal Democrats and Conservatives regarding forming our new Government. The truth is it’s not something that we are used to. British elections are an almighty dust up on the hustings with a winner once the dust settles the morning after.

This time it looked likely it would be hung due to the mass of seats that the Liberal Democrats might win but it was not to be and the Conservative party got closer to the line than many might have thought. As usual with politics there has been smoke and mirrors about secret meetings and potential deals and after another long day of wait David Cameron has emerged the leader.

The delay was frustrating many with suggestions that the Liberals were touting themselves around to such an extent that if we voted again come Thursday there would probably be a clear winner one way or the other. However, having been the bridesmaid for nearly a Century it seems that this Andy Warhol moment has been used to choose the correct bedfellow. Only time will tell if this is correct.

It’s too soon to tell quite what Cameron’s cabinet will look like but his maiden speech suggested a proper coalition between Conservatives and Liberal Democrats suggesting that important posts may pass to Liberal Democrat MP’s probably Nick Clegg and Vince Cable.

Last time we saw a coalition the Lib-Lab pact failed to prosper.  We have to hope that this has more success. A previous coalition under Winston Churchill comprised his War Cabinet and whilst our troops continue the fight against terror in Afghanistan this Cabinet may well set their domestic campaign as a War against Debt. By the weekend the Government Ledgers will most certainly be open to the two other Parties and the real truth about our financial standing open to scrutiny rather than supposition and rumour.

As we all realise things don’t appear to be good in our balance sheet and much pain may be required to put it back onto an even keel. A joint effort may therefore be more acceptable than one party acting and being criticised by its opponents. We have to hope so for whatever your political persuasion and however you voted no one would wish to see the situation in Greece being replicated upon our streets.

At the end of it all we have our youngest leader since 1812 and as in 1997 a Cabinet Room lacking in experience. For me the election has been interesting because of the interest of my Children who whilst still too young to vote have been interested in the whole process like it were a series of The Apprentice.

Whether we have an outright winner or a hung Parliament as usual with Great Britain protocol takes over with resignation words and trips to Buckingham Palace for both outgoing and incoming Prime Minister. Electoral reform may be necessary but please let’s not lose all of what we have for it sets us apart from the rest of the World and that’s what makes us special.