HS Financial Services - 10 tax year changes for 2016
10 tax year changes for 2016
The new tax year starts on the 6 April and from this date, a number of changes come into effect which may affect you and your money. The Your Money website have issued the below round-up 10 you should be aware of.

Personal Savings Allowance launches
This will take around 95% of taxpayers out of paying any tax at all on their savings income. Interest and savings earned in banks, building societies, NS&I products, company bonds and credit unions won’t be taxed up to a certain amount. For a basic rate taxpayer, you can earn £1,000 of savings income tax free while higher earners will get a PSA of £500. Additional rate taxpayers who earn above £150,000 are not eligible for the PSA. See YourMoney.com’s Personal Savings Allowance guide.
Personal Allowance and Income Tax thresholds rise
The amount of income you can earn before you start paying tax rises to £11,000 from £10,600 in the previous tax year. The threshold for the 40p higher rate income tax rises to £43,000 for the 2016/17 tax year, up from £42,385.
New State Pension comes into force and current State Pension rises
Anyone who retires on 6 April onwards will get the new State Pension. So that’s men born on or after 6 April 1951 and women born on or after 6 April 1953. The flat rate State Pension is set at £155.65 a week but not everyone will get the same amount. Some may get less depending on their National Insurance contributions. To get the maximum, you need 35 years of NI contributions and at least 10 qualifying years in order to receive part of this sum. If you have less, you won’t receive any State Pension. If you retired earlier, you’ll receive your pension under the old system. The weekly rate will increase to £119.30, up from £115.95. See YourMoney.com’s New State Pension guide.
Capital Gains Tax rate falls
Capital Gains Tax (CGT) is the tax you pay when you sell an asset that has gone up in value. It is paid at a basic or higher rate depending on the rate of income tax you pay. Capital Gains Tax on residential property does not apply to your main home, only to additional properties. From the new tax year, the higher rate of CGT will be cut from 28% to 20% and the basic rate from 18% to 10%. See YourMoney.com’s How to reduce you Capital Gains Tax bill for more information.
Innovative Finance ISA launches
A new type of ISA launches: the Innovative Finance ISA (IFISA). The IFISA means savers using peer-to-peer platforms will now be able to get tax free returns. While the relatively high rates of interest make it attractive, P2P isn’t protected by the Financial Services Compensation Scheme (FSCS). See YourMoney.com’s Peer to Peer lending: where should I start? guide.
Flexible ISA
Currently ISAs aren’t flexible so if you put £10,000 into an ISA and withdraw it, you’ll only be able to put in the remaining part of the annual allowance – £5,240 (£15,240 is the ISA allowance for the 2016/17 tax year). From 6 April 2016, ISAs will be flexible which means savers can withdraw and replace their savings within the same tax year without losing the full ISA tax benefits. Stocks and shares ISA providers can also allow this facility if the flexible options are made via a cash trading account. See YourMoney.com’s ISAs: back to basics guide for 2016.
Dividend Allowance
From 6 April, the first £5,000 of dividend income will be tax-free each year as part of the Dividend Allowance (this is on top of the income tax personal allowance). Above this allowance, dividend tax income will be taxed as follows: basic rate 7.5%, higher rate 32.5% and additional rate at 38.1% Rates of income tax payable on dividends will depend upon other taxable income. No tax will be deducted at source and taxpayers must use self-assessment to pay any tax due. This means basic rate taxpayers receiving dividends of £5,001 or more will be required to complete a self-assessment tax return. See YourMoney.com’s Dividend Tax: how will the changes affect you? Guide.
Lifetime Allowance cut
The Lifetime Allowance is the maximum amount of pension savings you can build up without a tax charge and this figure will be cut from £1.25m to £1m on 6 April. Your pension benefits are tested against the lifetime allowance when you start to draw them from the scheme. This may be in one go or at different times depending on how you draw your benefits. The government said the move would impact only 4% of the wealthiest population, but the reduction will also impact hard working individuals saving for retirement. See YourMoney.com’s guide to Pension Lifetime Allowance changes.
Annual Allowance Taper comes in
From 6 April, the annual pension allowance limit will be gradually reduced for higher earners. The annual allowance is the total amount of money you can pay into your pension pot every year. It is currently set at £40,000 a year for everyone. But the government is introducing a taper system which means the limit will be reduced for anyone whose income exceeds £150,000. The rate of reduction is set at £1 for every £2 of income, bringing the Annual Allowance down to just £10,000 for anyone with an income of £210,000 or more See YourMoney.com’s Annual Pension Allowance guide for more information.
Two changes in effect from 1 April: National Living Wage and Stamp Duty Land Tax
New National Living Wage

You could be in line for a pay rise from 1 April when the new National Living Wage (NLW) comes into effect. The current national minimum wage is £6.50 an hour but the new NLW for people over 25 is £7.20 an hour. The NLW will affect people in some parts of the country more than others but one group that will miss out altogether is the self-employed. See YourMoney.com’s National Minimum Wage guide for more information.

Stamp duty surcharge
New rules which came into force on 1 April mean anyone buying a second home or buy-to-let property will have to pay an additional 3% on top of the current stamp duty rates. The rules are pretty complicated and whether second homeowners or landlords will actually pay the surcharge depends on their individual circumstance. The additional duty is being imposed to “make Britain a country of homeowners” but the fear is landlords will end up covering the extra costs by charging tenants higher rent.
Posted by: Anne Barker on

General Buyer Terms

This agreement is in relation to MediEstates Limited whose registered office is at 1st Floor, Pacific House, Stanier Way, Wyvern Business Park, Derby, DE21 6BF acting for and on behalf of our clients ("the Vendors"); and yourself (Buyer's Name) in relation for an introduction to a prospective sale of a business as a going concern. By registering through this agreement I agree to all terms set out below:

  1. Definitions
    In this Agreement the following terms and phrases shall have the following meaning unless the context otherwise requires:

    Dental Practice business providing dental care. This business is under the MediEstates Ltd sale terms.
    Confidential Information
    Means the actual Vendors identity and all confidential information in respect of the Business, including, but not limited to, any ideas, business methods, prices, accounts, finance, marketing, research, development, manpower plans, processes, market opportunities, intentions, design rights, product information, customer lists or details, employees’ details, trade secrets, computer systems and software, and other matters connected with the products or services manufactured, marketed, provided or obtained by the Vendor, and information concerning the Vendor’s relationships with actual or potential clients or customers and the needs and requirements of such clients’ or customers’ operations.
  2. Obligation of Confidentiality
    The Prospective Purchaser agrees to treat as confidential, information supplied by or on behalf of the Vendor in connection with the sale of the Business.
  3. Exclusions
    The obligation of confidentiality set out in clause 2 does not apply to:
    1. any information received from a third party who was legally free at the time of disclosure to disclose it;
    2. any information which was already lawfully in the Prospective Purchaser’s possession prior to receiving it from MediEstates Ltd on behalf of the Vendor; and
    3. any information which is in its entirety already in the public domain.
  4. Duties of Prospective Purchaser
    1. The Prospective Purchaser shall take such a reasonable security measures to protect the Confidential Information and trade secrets.
    2. The Prospective Purchaser shall not, without the prior written consent of the Vendor, permit any of the Confidential Information:
      1. to be disclosed, other than in confidence to its legal or professional advisors;
      2. to be copied or reproduced;
      3. to be commercially exploited in any way;
      4. to be used for any purpose other than in connection with the prospective purchase of the Business;
      5. MediEstates is registered under the Data Protection Act 2018. Upon Signing this agreement you agree to follow the legal obligations of this act to protect the details of the information supplied to you, with it no to be passed outside of the control of you the prospective purchaser.
    3. The Prospective Purchaser agrees to keep a record of Confidential Information received.
    4. The Prospective Purchaser will return to MediEstates or the Vendor all documents containing Confidential Information and all copies of those documents on demand at any time which are in its possession or under its control, and for this purpose the term “documents” includes computer discs and all other materials capable of storing data and information. The Prospective Purchaser agrees that such documents remain the property of the MediEstates on behalf of the Vendor.
    5. The Prospective Purchaser must not jeopardise or re-direct the sale under any circumstances.
    6. The Prospective Purchaser must not contact the Local Area Team or CCG regarding any practice sale, by any means of media unless written permission is granted from the Vendor.
    7. To carry out own due diligence on practice purchases and accepts that any information MediEstates has supplied is information provided by the vendor and is not responsible for its accuracy or completeness.
  5. This Agreement
    The existence of this Agreement and its terms are confidential and neither MediEstates nor the Purchaser may disclose anything about this Agreement or its subject matter or implementation to any person other than in confidence to their legal or professional advisers.
  6. Duties of Prospective Purchaser
    When buying Dental practices, finance is normally needed. Our organisation operated over more than one of the MediHoldings brand, by completing this from you agree that the information can be shared to our other organisations to avoid the need to register independently and provide the best possible service.

    MediEstates will refer you to the specialist dental lending team and MediFinancial who will contact the necessary banks, whom have preferential healthcare lending rates in some cases, to ascertain which funding is available to you.
    By signing this agreement you do not have to use any of the banks MediFinancial contact, it is just another service which we provide.
  7. Deposit for Dental Practice
    If you are interested in putting forward a formal offer in for a practice, once the offer is accepted there will be a deposit required to secure the practice sale which is dependant of the practice size. This deposit is held in a client account and will be returned to the buyer on completion of the practice sale. You the buyer, will be required to sign a deposit schedule which will cover the buyer and the seller in the event that the practice sale does not proceed.
  8. Changes to this Agreement
    Any changes made to this agreement must be authorised and signed by one of MediEstates Ltd Directors.
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