ACCA Income Tax General Update. Date 10 May 2007. Taxation Update. Income Tax (Amendment) Bill 2007 - Paul Martin A New Income Tax Regime for Pensions - Richard Carter A View on the New Pension Regime from the Industry - Jon McGowan 2007/08 and future changes - Alice Martin
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ACCA Income Tax General Update
Date 10 May 2007
Income Tax (Amendment) Bill 2007
The Taxation of Pensions in the Isle of Man
ACCASEMINAR: May 10th 2007Jon McGowanPensions – are they still relevant?
Pensions – still relevant?
Why do we need them?
Age at beginning
of tax year
% of earnings which can
be paid each tax year*
35 or under
36 to 45
46 to 50
51 to 55
56 to 60
61 to 74
NB - Moving to Annual Allowance April 2008
What comes out at ‘retirement’?
Benefits available between ages 50 – 75
Choice of pension type e.g. level or rising
2007/08 and Future Changes
A trading company owned by Mr Resident
The dividend paid is not sufficient, so the following DPC will be payable:
The £5000 dividend paid will carry a DPC credit that can be claimed by the resident shareholder.
The dividend paid is grossed up :
The DPC credit is calculated like this:
In both years a dividend of £5000 was paid and is fully taxable on the shareholder. In 2006/2007 the £5000 is paid gross, in 2007/2008 it is paid net with a tax credit.
The net dividend paid is grossed up like this:
The tax credit is calculated like this:
The shareholder declares a gross dividend of £5556 and claims the tax credit of £556 by submitting a tax credit voucher.