Tax Planning – Income Tax Shelter for 2010/11

Tax Planning – Income Tax Shelter for 2010/11

Just imagine… you do not need to pay income tax at the 40% or 50% rate for this tax year! Instead, you’ve used that money to buy UK property with the potential for returns and….. you get cash back for doing it! How does that feel?

This works very well for self-employed earners as well as employees as it doesn’t matter if you’ve already suffered income tax on your salary and/or bonus, because this will be refunded.

Sound too good to be true?

No this is not fantasy, it is reality and the Government wants you to do this.


Well because you are investing in areas deemed to be in need of regeneration (think Canary Wharf in the 80’s which was funded with this same technique) and the Government wants to encourage British taxpayers to invest in such areas to help stimulate the local economy, attract businesses and create jobs. The incentives for doing this are the advantageous tax breaks.

Key highlights are as follows:

• The tax relief is given by way of a statutory claim. This is not based on some interpretation, but is a statutory relief enshrined in tax law.
• It is a Government-backed tax shelter.
• An individual effectively invests part of their tax money in commercial buildings situated in an enterprise zone via an enterprise zone syndicate.
• Enterprise zone = regeneration area (Canary Wharf is an example).
• The tax relief is provided through the form of capital allowances and has been around since the early 1980’s.
• Income tax at the 40% or 50% tax rate is sheltered for the 2010/11 tax year.
• Last chance to claim – the relief will no longer be available after 5 April 2011.

The result:

– you obtain a substantial shelter against your income tax at the 40% or 50% rate (depending upon which tax bracket you fall into) for 2010/11;

– you instead use part of that tax money to buy an investment (the £30,000 shown above) backed by commercial property and cash on deposit with the potential for returns on that investment; and

– you get cash back (i.e. the tax relief exceeds your investment so you end up cash positive).

The choice is:

– pay the tax man your income tax at the 40% or 50% rate and wave goodbye to that money forever; or

– use that money to better effect – accept the tax man’s offer to use that money to make an investment with potential returns and get cash back (if you’ve already paid the tax through PAYE) or be cash positive (if you’re self employed and yet to pay your income tax on account).

So what are you waiting for?

Contact us now on 020 7470 8820 and ask to speak to a tax adviser about how we can make you wealthier this tax year or e-mail us at and we’ll get straight back to you.

201/11 is the last tax year this particular tax break will be around so you need to use it or lose it.

Don’t delay. Applications are already being received and this is only available on a “first come, first served” basis and will fill up very quickly.

28th February 2011

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