Q. Can you provide some tax planning tips before budget day?
A. With all the hype around upcoming budget day, it would be understandable if you have forgotten to think about how you can implement tax planning ideas in advance of the BIG day! I have provided below some simple ideas which you could consider before December 7th (assuming increases in taxes and not decreases!).
1. Pension Contributions: at present tax relief is available at your marginal rate on contributions to personal pension schemes subject to an income cap of €150K and rates ranging from 15% to 40% of earnings depending on age. With the possibility of a restriction in the relief after the budget, you may consider advancing the payment of any contribution to before 7thDecember.
2. Income tax: with income tax rates including levies likely to be increased for 2011, consider bringing forward income and bonus payments to 2010.
3. Capital Gains Tax: an increase in the rate of capital gains tax is expected. In the event that you are considering selling a chargeable asset, consider accelerating disposal to before 7th December.
For further information, please contact Imelda Prendergast, Partner, OSK Contracting, OSK Small Business Support
A video message from Tadgh O'Sullivan, Director.
To request a call back from the OSK team, please complete the form below.