Some dentists can celebrate budget: NASDAL
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- Published: Tuesday, 03 April 2012 17:23
- Written by News Editor
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| The National Association of Specialist Dental Accountants and Lawyers (NASDAL) says that high earning dentists have reason to celebrate following the announcement by Chancellor George Osborne that the 50% income tax rate on earnings over £150,000 will reduce to 45% from April 2013. |
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But NASDAL warns that this could be off-set if they are buying or selling very expensive properties. Stamp Duty Land Tax on residential properties over £2 million will be increased to 7% from 5%.
The main rate of corporation tax is going to come down which will also benefit higher earning dentists who have incorporated and who earn more than £300,000. For most of the profession, however, the tax position will remain unchanged in the years ahead.
Other key changes are:
- The top rate of income tax of 50% on over £150,000 will reduce to 45% from April 2013.
- The main rate of corporation tax will be cut to 24% next year and will fall 22% from 1 April 2014. The small company rate remaining at 20%
- The personal allowance (PA) will rise to £9,205 from 6 April 2013, and age related allowances for pensioners will be phased out over time as the PA increases.
- A cap will be introduced on unlimited income tax reliefs for anyone claiming more than £50,000 of relief. The cap on a variety of different reliefs will be restricted to the higher of 25% of income or £50,000.
Alan Suggett, Chartered Accountant of UNW LLP media officer for NASDAL, welcomed the announcement that the Chancellor is going to introduce tax avoidance legislation – known as an anti abuse rules - in next year’s finance bill. “Dentists will be aware of tempting schemes for reducing tax which sound too good to be true and are usually to be avoided. The new legislation will stop the ultra-aggressive and contrived arrangements, eliminating the temptation– which will prove to be a good thing as they usually come to regret having entered into them.”
The top rate of income tax of 50% on over
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