Beware of the 40% tax creep

In this year’s budget, great emphasis was placed on the continued large increases in the personal allowance. The allowance increased by £1,335 to £9,440 in the tax year 2013/14 and the much heralded increase to £10,000, is being brought in a year ahead of schedule in 2014/15. This means, come April 2014, the personal allowance will have increased by over 54% in just four years. But, and it is a big but, there is an underlying trend which has not received as much publicity and this could have a significant impact on your clients’ planning decisions. On the upside, all appears to be goo...