Private client briefing for January 2014

Key developments affecting the taxation of private clients are as follows.

Autumn Statement and draft Finance Bill 2014 measures

Transferable tax allowance

From April 2015 spouses and civil partners will be able to transfer up to £1 000 of their personal allowance to partners earning no more than the basic rate limit giving a maximum saving of £200.

The maximum benefit is therefore very limited but this will add another administrative chore for employers with the transfer being given effect via PAYE codes in most cases.

Pension protection from the reduced lifetime allowance

FA 2013 reduced the individual...