Our Personal Tax service
Welcome to our Personal Tax Centre.
Our Personal Tax Centre (PTC) is EY’s centre of excellence for personal tax services.
We help around 40,000 individuals prepare and file their annual UK tax return, and our teams of highly experienced professionals provide quality advice across a wide range of issues, and are committed to delivering exceptional service and building strong working relationships with every client.
We help with a wide range of issues, from simple tax returns or repayment claims to very complex returns and specialist tax advice.
Our services are competitively priced according to the complexity of your circumstances, and we always agree fees upfront, which gives clarity, and prevents unexpected charges.
By concentrating our personal tax experience into one centre, we can provide the very best quality service and advice across a wide range of issues, at an affordable price.
UK tax law is complex, and you may be required to file a tax return with HM Revenue & Customs (HMRC) even if your affairs are relatively straightforward. You can check whether you need to file a return using HMRC’s guidance.
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98% of respondents to our annual client satisfaction survey rate our service as good or excellent.
- Major changes to taxation of non-domiciled individuals
Finance (No.2) Act 2017 brought significant changes to the taxation of non-UK domiciled individuals, with the main effect taking place from 6 April 2017.
Our experienced advisory team have followed the non-dom changes very closely, from their proposal to their eventual enactment, and can advise on how the new rules could affect your UK tax position. We can help you plan ahead and take advantage of transitional provisions introduced to provide valuable relief to non-doms in certain circumstances.
- Individuals who have been resident in the UK in at least 15 out of the last 20 years are deemed domiciled in the UK for income tax, capital gains tax and inheritance tax purposes from 6 April 2017.
- Individuals born in the UK with a UK domicile of origin but have acquired a non-UK domicile of choice are deemed domiciled in the UK whenever they are UK resident (with a grace period for inheritance tax purposes).
Capital gains tax rebasing
- Rebases the base cost of an asset to 5 April 2017 for capital gains tax purposes.
- Rebasing is available for individuals who became deemed domiciled in the UK on 6 April 2017 under the 15 out of 20 year rule.
- Rebasing only applies to assets which were foreign situs assets from 16 March 2016 (or from date of acquisition if later) until 5 April 2017 and then on until the sale.
- To qualify for rebasing, the individual must remain deemed domiciled until the date of disposal and must have paid the remittance basis charge.
Mixed fund cleansing
- It is possible for individuals to take action to cleanse mixed funds in the period to 5 April 2019.
- The rules for mixed fund cleansing are complex and there are potential pitfalls. For example, an over nomination of income or gains on a transfer by as little as £1 will invalidate the nomination.
- Guidance provided by HMRC does not give clear answers on a method for effective mixed fund cleansing.
- Changes to the taxation of offshore trusts
- Settlors of offshore trusts may have income and gains arising in the trust attributed to them under specific anti-avoidance rules as if the trust was transparent (including cases if an underlying company is used). From 6 April 2017, the remittance basis would no longer offer protection for this if the settlor is deemed domiciled.
- For those not yet deemed domiciled, the remittance basis may still be available and income and gains would only be taxable if matched to payments/remitted to the UK.
- HMRC have introduced a new ‘protected settlements’ status, which may allow the underlying foreign income and gains to be sheltered from the UK tax charge until the time a payment is made.
- The protections will be lost forever where property or value is added to the settlement (‘tainting’) once the settlor is deemed domiciled, with certain limited exceptions. The concept of adding property or value is very widely drawn and even providing advice could taint.
- Loans to trustees or between settlements which are not on arm’s length terms would taint settlements once the settlor is deemed domiciled.
- These protections are not available to settlors who are returning UK doms.
- Further rules have been introduced which may tax the settlor when a family member receives a benefit and also which may tax a UK resident recipient of a gift if that gift stems from an offshore trust.
- Trusts: Inheritance tax and IHT100 returns
Our PTC has a dedicated trust team handling all aspects of trust taxation, including trust tax returns, inheritance tax (IHT) returns, capital gains holdover claims, and trust advisory services.
The 2006 Finance Act introduced some major changes to how trusts were charged to IHT. As a result, from March 2016 an increased number of trustees will be required to submit IHT100 returns and pay IHT liabilities to HMRC.
This may be relevant to trustees who hold investment bonds, life policies, discounted gift trusts, loan trusts, investment portfolios, property or any other trust assets.
We can advise trustees of their obligations to file IHT100 returns, calculate any IHT payable and prepare the IHT100 returns on behalf of trustees.
Please e-mail us to find out more.
- Buy to let landlords
There have been major changes to the taxation of rental income from residential properties, and an increased charge to stamp duty land tax (SDLT) in relation to the acquisition of additional residential properties.
These changes will potentially affect all individuals receiving rental income from residential property, and those affected are likely to see an increase in their tax liability. Landlords should therefore consider how these changes will affect them.
Our experienced team of tax advisers can advise landlords on how the changes may affect their tax position, and identify potential cash flow issues. We can also advise on options available to landlords when taking the changes into account.