The Year in Review – 2011 Tax Round Up

The 2011 year has been another year of significant tax changes; here is a summary of the key changes we have seen: 

  • A fall in the personal tax rates where the top effective personal tax rate has fallen from 35.5% to a top rate of 33%, which now equals the Trustee tax rate.
  • The abolition of Gift Duty, which has brought with it a whole series of other quite significant issues to consider before gifting away large sums of money including:
  • whether eligibility for the residential care subsidy can be retained
  • whether the donor is solvent at the time of the gift.
  • The company tax rate has fallen from 30% to 28% though dividends from companies must continue to have tax credits attached to 33% – meaning 5% withholding tax has to be deducted by the paying company.
Details