Honan Financial Services Limited’s Post

Great to see that the Department of Finance Ireland have finally realised the negative impact on peoples financial security not to mention the disparity and barrier to entry that the 41% tax rate on investments represents. If we can also remove the 1% levy and the 8 year deemed disposal rule this will be a really positive step forward. Why can't Ireland introduce tax efficient savings plan like the UK ISA (tax free savings). We need to incentivise people to save effectively and efficiently. The Financial Planning community have been lobbying for this change for years. Simon Harris Jack Chambers Neale Richmond TD Paschal Donohoe #letsgetthisdone #financialplanning #financialeducation #NFPIreland https://lnkd.in/e5-GKEzp

Just had time to reflect on an uninspiring Budget. I feel we could do more to tax the Ultra-High-Net-Worth Individuals (UHNWIs): Ireland has room to explore more progressive tax measures targeted at UHNWIs, who often possess wealth largely in the form of capital assets rather than income. Some suggestions for taxing them include: 1. Wealth tax: Reintroducing a form of wealth tax could be effective, targeting UHNWIs who hold substantial assets in property, financial instruments, or other investments. Wealth taxes have been proposed as a means to redistribute wealth more effectively, especially as income inequality widens. 2. Capital Gains Tax (CGT) reform: Increasing the CGT rates for UHNWIs, especially on non-productive investments like property speculation or luxury assets, would ensure that those benefiting most from asset price inflation contribute more to the public purse. The current CGT relief for angel investors and retirement relief schemes could be narrowed to exclude those above a certain wealth threshold. S.597AA is also clearly abused and is more of a piggy bank than an investment driver at present. 3. Inheritance and gift taxes: Further tightening Capital Acquisitions Tax (CAT) on large estates, especially those over a set threshold, could ensure that wealth isn't merely passed on untaxed. Ireland already raised the CAT thresholds, but additional reforms for very large estates could be implemented. 4. Increased stamp duties on high-value properties: Extending the 6% stamp duty rate introduced for properties above €1.5 million could be a start, but a further progressive rate could be introduced for even higher-valued homes and real estate owned by UHNWIs. 5. Implementation of a CGT exit tax for individuals who change residency from Ireland, mirroring the corporation equivalent measure, should be considered. The above will result on additional taxes which advisors generally disfavour but that can as much to do with their limitations, not the Governments. #thoughts These measures would aim to ensure that Ireland’s wealthiest individuals contribute more fairly without discouraging innovation or entrepreneurship.

In his last expected Budget before the general election, the Chancellor confirmed the heavily trailed 2p cut in National Insurance contributions, a shake-up of the ‘non-dom’ tax regime and the creation of a ‘UK ISA’. Here’s our summary of the key points and what they could mean for you and your money. #financialplanning #investmentplanning

Yesterday’s Budget introduced several key measures affecting the financial services industry. The tax rate on carried interest will rise to 32% from April 2025, with further changes planned for April 2026. The higher capital gains tax rate has increased to 24%, and the Government confirmed the introduction of the Reserved Investor Fund, offering more flexibility for UK real estate investments. Please see our Budget Hub for more detailed general analysis and insight, including a link to our webinar recording: https://lnkd.in/ebUUW3T9 #BDO #AutumnBudget2024 #tax #financialServices @BDO UK LLP

https://lnkd.in/eq4EbWUB An interesting day ahead. The highlight in this Financial Times article is their prediction that the mad ‘ remittance basis’ is to be scrapped. Possibly the worst tax incentive in the big yellow books, in that it encourages people to not spend money or invest in the UK economy. Instead, non doms spend their time sweating at the prospect of falling foul of the ‘mixed fund rules’ - a notoriously challenging set of rules that are very difficult to understand for the taxpayer and indeed the tax adviser. A simple exemption for overseas income with no restrictions on bringing it to the UK is the way forward, sensibly suggested by Labour in 2022. There are other bits to untangle in the rewrite of domicile rules, but today I hope marks the start of a modern, competitive and straightforward regime for taxpayers that will strengthen, not weaken the UK.

A rather rowdy Spring Budget today!! Here are some key points - 👶🏻 The Child Benefit High Income tax charge is being reformed so this will be based on household income rather than the income of each parent. This will change from April 2026. In the meantime from April 2024, the threshold will be raised to £60k, with a higher taper from £60k to £80k. 📉 The non-domiciled tax regime is to be abolished and replaced by a ‘fairer’ system meaning no tax on foreign income and gains for the first four years of UK tax residency for new arrivals. However, after four years they would have to pay the same taxes as a UK resident. 👨🏼💻 National Insurance cuts to take effect from 6th April 2024 – Employees NI will drop again to 8% from 10% and Self-Employed NI from 8% to 6%. 💡 The VAT registration threshold will increase from £85k to £90k.   🏠 The Capital Gains Tax rate on residential property for higher-rate tax payers will be decreased from 28% to 24% for disposals made on or after 6th April 2024. 🌞The Furnished Holiday Let Regime will be abolished meaning they will lose some of the tax advantages associated with a trading status including loss of Business Asset Disposal relief, increasing Capital gains from 10% to 24% & the ability to offset losses against total income. What are your thoughts on these key changes and how will they affect you?

Some great insight into the proposed changes to Canada's capital gains tax. Is it really only 0.13% of Canadians that will be affected? Doesn't look like it. Thank you to my colleagues Pooja Mihailovich and Leandra Gupta for this concise and straightforward look into the proposed changes. Osler, Hoskin & Harcourt LLP

The future of #inheritancetax 🪦 A newly published report by cross-party think tank Demos states that “Inheritance tax (IHT) is poorly designed and ripe for reform” It argues that the UK should adopt measures implemented in other countries such as; 1️⃣ Capping business relief (i.e. private company shares would be taxable). The report cites an IFS study that capping business relief at £500,000 would raise £1.1 billion. 2️⃣ Ending the IHT exemption afforded to pensions. 3️⃣ Taxing inherited capital gains i.e. ending the rebasing of costs on death. 4️⃣ Introducing progressive taxation, where higher rates of tax are paid by the most valuable estates. The report cites such as South Korea and Japan as examples with top rates of tax of 50% and 55%! IHT is regularly cited as the “UK’s most hated tax”, with many seeing assets they’ve accrued from taxed income and gains taxed again 😤 Despite its unpopularity, less than 4% of estate’s actually pay it, with 98% of tax paid by the wealthiest 20%. Such changes are unlikely lose too many votes therefore, and with a new government needing to raise funds to meet its spending goals, IHT seems a likely target 🎯 Once any changes are formally announced, those impacted should review their planning with their professional advisers 📑 #tax #financialplanning

This post is really for my UK based adviser followers so please share this within your network. I have found that one of the contributory factors to people moving to Ireland and leaving their savings and investments in place is that their current adviser is conflicted because they are about to lose a good client and, if they charge an assets under management fee, probably a good annual income. Too often the current adviser will say, and I had this just recently with a family moving from the UK, let's just leave your investments where they are because they are doing well. Now, it may be true that the investments were doing well, but they were doing well inside a UK Individual Savings Account (ISA). There are no ISAs in Ireland and the taxation of collective investment funds typically held in a Stocks and Shares ISA from an Irish perspective is that they are subject to exit tax at a flat rate of 41% on both income and gains with a notional tax charge every 8 years from the date of acquisition (which typically would have been when the client was UK tax resident and no UK tax would have applied to the investment). The effect being that the tax-free UK investment is now subject to Irish tax on gains which were previously shielded from tax. A UK ISA is free from UK personal tax (income tax and capital gains tax) so the best advice a UK adviser can give in this position is to say, look it's been a pleasure working with you but I'm not the best person to help you in a different country with different tax laws. Let's cash in the ISA before you become Irish Tax resident (note our tax year end is the 31st December) as there are no UK tax implications and I'll help you find a new adviser in Ireland. Whilst this is what should happen, all too often it doesn't. #PFS #CII https://lnkd.in/eisUgqjK

Budget 2024: What Does it Mean for You? 👉 Changes Happening Now (April 6th, 2024): ◾ Capital Gains Tax (CGT) on houses is reduced: When you sell a house, you usually pay a tax on the profit. This tax is called Capital Gains Tax (CGT). The rate for residential properties has been reduced from 28% to 24%. ◾ Employee National Insurance contributions (NICs) are lower: This is a tax taken from your salary. The rate for employees has been reduced from 10% to 8%. ◾ Multiple Dwelling Relief for property tax is abolished: This was a benefit for people who bought multiple properties at once. It is no longer available, but a lower tax rate still applies for buying six or more dwellings together. ◾ New real estate investment option: A new type of investment fund, a "Reserved Investor Fund" (RIF), has been approved. These funds aim to be a low-cost way to invest in real estate. 📌 Changes Proposed for the Future (April 6th, 2025): ◾ New rules for people living in the UK but not permanently (Non-doms): Currently, these individuals have some tax advantages. The new plan removes most of these benefits and makes them pay UK tax on their worldwide income after four years. ◾ Tax benefits for furnished holiday lettings (FHLs) are removed: These are properties rented out for short periods. Currently, they enjoy certain tax benefits. These benefits will be removed in 2025. ❗ Additional Points: ◾ Inheritance Tax (IHT): Getting credit for inheritance tax payments is now easier before you receive your inheritance. ◾ Company tax and investment allowances: No major changes for companies or people who invest in businesses. ◾ Tax avoidance: A recent court decision that allowed some people to avoid tax is being reversed. #CGT #NI #Budget2024 #Tax #NonDoms #CapitalGainsTax #CompanyTax MoneyHelper l Plum l Nutmeg l The Chartered Institute for Securities & Investment (The CISI) l Moneybox l AJ Bell l Hargreaves Lansdown