News / UK by Press Association 11/07/2019, 4:17 pm Send us a story Sign up to our Daily newsletter The Tories need to be bolder in defending tax cuts for the rich, one of the frontrunners to be the next chancellor said. Liz Truss, an ally of Boris Johnson, said the Conservatives should make the case for people earning £60,000 to be given a tax break. The current Treasury Chief Secretary acknowledged she was “not yet at Number 11” but joked about her ambitions for the role. Current Chancellor Philip Hammond is expected to be sacked by Mr Johnson if he wins the Tory leadership race and becomes prime minister, with Ms Truss or Sajid Javid likely to replace him. Mr Johnson has put forward plans for a package of tax cuts, including for people earning more than £50,000. The move led to a clash with Jeremy Hunt in the televised debate, with the Foreign Secretary claiming it was sending a signal that the Tories are “a party of the … [Read more...] about Tories need to make case for tax cuts for high earners – Truss
Clampdown on pensions tax relief hits high earners
0 Have your say Thousands of Scots are missing out on council tax relief to which they are legally entitled, a charity warned today as official statistics revealed the numbers claiming the benefit have plummeted. Figures published by the Scottish Government found 7,110 fewer households are claiming the reduction compared to March 2018, and almost 75,000 fewer households are claiming it compared to April 2013 when the scheme was introduced.The scheme aims to support low-income households in Scotland by reducing their council tax liability, with the reduction worth on average around £700 per household.Citizens Advice Scotland (CAS) said a lack of public awareness could be behind the drop and encouraged householders to check if they were eligible. “Recent evidence that shows there is a strong lack of public awareness around eligibility for the council tax reduction scheme," said CAS spokesman Myles Fitt. "It’s therefore worrying that fewer … [Read more...] about Thousands of Scots missing out on council tax relief
It is important that tax reliefs — particularly the costliest ones — are scrutinised and that there is proper parliamentary debate to ensure they remain cost-effective and fit for purpose, writes Eamon Murphy.Given where the discussion is on the need for tax reform internationally, it is critical that Ireland review its approach to tax reliefs.Tax reliefs — or tax expenditures, as they are often known — are policy tools for reducing an individual’s or firm’s tax liability, usually with the goal of encouraging certain behaviours. They are often politically appealing as they don’t increase direct government expenditure and there is little extra administrative burden. All this sounds so wonderful that it is usually overlooked that these tax reliefs represent revenue foregone by the government, so there is always a cost attached.In 2016, tax reliefs amounted to approximately 10% of total tax revenue. This is a huge amount of money. However, unlike … [Read more...] about Tax reliefs mean the poor subsidise the savings of the rich
About eight years ago, we bought a second home in Portugal. The cost was about €250,000 and we took out a mortgage to buy the property. We now spend about 20 weeks a year in Portugal. The Portuguese authorities offer very generous tax terms on foreign income from private pensions. I believe that you must own a property in the country and spend a minimum of 183 days per year in Portugal in order to declare as a non-resident taxpayer over there. We are spending more time in Portugal each year, so the 183-day requirement could be easily met. We would continue to live in Ireland for the remainder of the year. My understanding is that the income from my State pension and the total income from my wife's pension would not be eligible for the zero percent Portuguese tax rate. However, I would still make a substantial saving on the tax payable on my private pension - if my pension was taxed in Portugal rather than Ireland. There may well be additional savings in future years in terms of … [Read more...] about Could I save on pension tax by retiring in Portugal?
Thousands of homeowners are missing out on lucrative housing-related tax reliefs, comments Eileen Devereux, commercial director with Taxback.com. Taxback.com’s latest Taxpayer Sentiment Survey has found that 65% of people do not know what the Home Renovation Incentive (HRI) is, 60% don’t know what the Rent a Room Scheme is, while 57% don’t know about the Help to Buy Scheme. “We believe there are many more people who could be availing of these tax reliefs. Some people could be missing out on the reliefs available to them, due to a lack of awareness or understanding,” said Eileen Devereux. The figures for those availing of tax reliefs suggests there may be thousands of others failing to apply. Just 7,350 people took up Rent a Room relief in 2016, with countless others missing out on earning up to €14,000 tax-free from renting out a room in their home. In 2018, some 28,882 works were carried out under the HRI, but how many others built an extension, a … [Read more...] about Homeowners missing out on lucrative tax reliefs