Celebrities caught out in Tax avoidance

In a way this story appealed to me because it was about someone else besides the bankers being meted out a bit of a financial bashing. Do not get me wrong seeing some of the country’s more smug bankers get their bonuses cut has been quite satisfying but there is only one thing more smug that a rich banker and that is a rich celebrity. And this week they got a bit of the self satisfaction knocked out of them as well as being forced to give the country more in taxation, so the rest of us win twice really. A story in the London Evening Standard alerted me to the situation. Apparently some celebs Anne Robinson, Jeremy Paxton and Wayne Rooney to name a few were caught out dealing with a company that was more about tax avoidance than it was about giving back to the community, as it claimed. It seems the tax man is not too happy about the whole situation and looks set to clobber them for up to 2 billion in back taxes. Not just the celebrities clearly but all those involved. For all the talk of bankers and getting the money owed to country by non doms there is something more pleasurable about these people being made to pay their fair share. I think for me the pleasure comes from the fact that with the exception of Wayne Rooney, non doms and arguably bankers are more use than these celebrities. None of us mind paying tax just that we want to pay what is fair and we want everyone else to too. If you are having problems keeping your tax to a fair level get in contact with us here at SC Lee Accountant and we will take you through you options. Not tax avoidance but fair tax management is what we are all about.

Capital Gain Tax

Capital Gains Tax

Capital gains tax rates and bands are as follows:   2009/10 2008/09 On chargeable gains 18% 18% Annual exemption     - individual £10,100 £9,600 - settlement(s) (spread over total number) £5,050 £4,800   Chattels exemption     (proceeds per item or set) £6,000 £6,000

 

Entrepreneurs’ Relief

This relief will reduce the chargeable gain on qualifying assets by 4/9, resulting in an effective rate of 10%.  An individual will be able to make claims for disposals on or after 6 April 2008.  Claims may be made on more than one occasion, up to a “lifetime” total of £1 million of gains.

Notes

1. Transfers between husband and wife or civil partners living together are generally exempt.
2. Capital gains of all trusts for 2009/10 are taxed at the standard rate of 18%. Where there are several trusts created by the same settlor, the annual exemption is divided equally between them, subject to a minimum exemption of £1,010 (2008/09 £960) for each trust.