Businesses doubling up on tax relief after SSAS lift in Budget
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More businesses are looking to borrow money from their Ssas to get double tax relief after the Government boosted the annual investment allowance to £100,000.
Since April 2008, firms have been offered tax relief on up to £50,000 spent on plant and machinery but Chancellor Alistair Darling doubled this in last month’s Budget
Talbot & Muir director Nathan Bridgeman says: “This means a business can get tax relief on repaying the loan to the pension scheme as a business expense and get tax relief when it uses that money to invest in plants and machinery. It is a good little strategy for businesses and pension schemes.”
Meanwhile, Barnet Waddingham have begun promoting unauthorised pension fund payments for some clients.
Money Marketing revealed in October that Talbot & Muir was allowing clients to withdraw 25 per cent of their pension fund each year in addition to the maximum allowed by the Government Actuary’s Department despite it being subject to a 55 per cent unauthorised payment charge.
The firm said there was high demand from people wanting to get their funds in the hands of beneficiaries before age 75 when they will face 82 per cent tax. But Hornbuckle Mitchell attacked the move, labelling it “a cut and dried case of pension-busting”.
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Readers' comments (2)
Nem | 8 Apr 2010 5:02 pm
Perhaps we should be explaining this to some local (and not so local accountants) as seems like a good use of legit' tax planning?
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Simon Webster | 8 Apr 2010 5:18 pm
If this stupid govt. comes up with stupid rules they must surely expect savvy advisers to make appropriate arrangements to befit thier clients
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