Planning for the higher rate
There are a range of sensible and effective options which will mitigate the impact of the forthcoming rate increase. Planning now rather than later is, as ever, the best approach and planning for both employment and investment income is key. A bespoke approach will typically provide the best solution since planning should always be appropriate to your particular tax and personal profile. Key factors will include your long term residence plans, your various sources of income and your anticipated expenditure. Tax planning should be perfectly integrated with your commercial objectives, so your succession planning and business strategies will be relevant.
Some senior executives are considering moving overseas in a bid to escape the new tax rate and the PDF below provides tips on what needs to be considered if such a move is planned.
If you are in the process of negotiating or renegotiating a contract of employment, it may be sensible to restructure your employment and benefits package in light of the new rate.
