tax planning banks
Tax planning ‘to come under more scrutiny’
Experts have predicted that those who set up trusts as part of their tax planning strategies may be set to come under more scrutiny.
According to a report in the Financial Times, accountants suggest that prosecutions among those who establish such asset protection measures in order to reduce their inheritance tax liabilities will increase significantly.
The publication noted that industry practitioners had warned the “balance of power” is shifting towards HM Revenue & Customs, which collects and administers all tax paid by individuals and businesses.
Special tax “squads” are said to be in the process of being redeployed as part of a crackdown announced by the government recently.
Meanwhile, those who set up offshore accounts and schemes designed to enhance their asset protection and reduce their tax liability will be analysed more thoroughly.
In addition, as of next April, trusts that are used for inheritance tax planning will be the subject of more detailed focus.
Commenting on the developments, specialist Alan Pearce said they will have a big impact on consumers.
He stated: “This is one of the most significant clampdowns in the past 30 years.”
Also commenting on the issue, head of estate planning at Standard Life Julie Hutchison remarked: “The government is primarily concerned with finding new schemes it doesn’t know about.”
Currently, the threshold at which inheritance tax kicks in is ?325,000 and this has been frozen for the next four years.
During the run up to the election, the Conservative Party announced plans to raise this to ?1 million. However, it was forced to shelve the idea in order to form a coalition with the Liberal Democrats and the subject has slipped away from public discourse.
It is unlikely to resurface in the near future, particularly given the austerity measures being implemented by the administration in a bid to tackle the deficit.
About the Author
The Article is written by www.scfgroup.com providing Offshore Company and Tax Planning Services. Visit http://www.scfgroup.com for more information on www.scfgroup.com Products & Services___________________________Copyright information This article is free for reproduction but must be reproduced in its entirety, including live links & this copyright statement must be included. Visit www.scfgroup.com for more services!
Is there any tax benefit plan for investing 3000 Rs every month for 5 years without any market risk.?
I want to invest 3000 Rs every month for 5 years (60 month) Is there any tax benefit schemes in any bank or any financial organisation where I can withdraw all the invested money after 5 years.
Both options suggested by Joshi A are market linked. Also insurance is not for investment.
You cannot get tax benefit for the plan you have in mind.
You want the money invested in the 60th month back immediately without any lock-in period. That is not possible. You can never get tax benefit without a lock-in period.
Year End Tax Planning
Demand for financial services pros expected to grow
Reforms in industry, expansion of banks’ products and services to spur hiring, experts say.