Tax Provisions for Dentists

Alistair Darling’s third Budget Report cites taxation provisions for dentists. What follows are the main provisions and is by no means exhaustive.

• National Insurance Rates – 0.5% increase in the rates of NIC applicable from April 2011. This is on top of the 0.5% increase previously announced in the PBR 2008.

• Income tax rates and allowances –2010-11: addition of 50% rate, applying to income in excess of £150,000 (42% on dividends in top band). Trust rate of tax increased to 50%.

• ISA – Limit raised to £10,200 from 2010. Over the course of the next parliament, ISA limits will be increased in line with the RPI on an annual basis.

• Pensions – April 2010: Pension relief for the higher paid is restricted, potentially affecting any dentists with annual income (including rental income) over £130,000

• Business Rates – Cut for a year from October, meaning a tax reduction for 500,000 small firms in England.

• Stamp Duty – First-time home buyers will pay no stamp duty on properties worth up to £250,000. Relief is time-limited to two years.

The ASPD is a network of professionals who specialise in providing services to the dental profession. Offering expert professional advice and support on the business aspects of running a dental practice

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