Tax Planning

REVIEWING & MINIMISING YOUR INCOME TAX

Tax legislation is complex and frequently changes, which may leave you wondering if you’re utilising all the various reliefs and benefits available to you. As we always keep up to date with the latest rule changes, we can give you timely advice and our latest thinking on all aspects of reducing your tax liability. 

We can advise you on tax efficient investments such as EIS, SEIS and VCTs, the reliefs we can claim for you personally and your family, and advising on the availability of relief on pension contributions, in line with the current limits. If you derive some of your income from property, our specialists will be able to advise you on the most tax-efficient approach.  

And yes, we will be delighted to complete your self-assessment tax return for you. 

DON’T BE CAUGHT OUT BY CAPITAL GAINS TAX

From selling your business to disposing of shares, planning for and seeking ways to reduce Capital Gains Tax (CGT) is essential if you are intending to dispose of assets. Many people are unaware that even simply gifting an asset can trigger a liability to CGT.  

We can advise on a range of reliefs, including Business Asset Disposal Relief (formerly Entrepreneurs’ Relief), Holdover Relief and Rollover Relief as well as managing the timing of disposals to ensure any transaction is as tax efficient as possible. If you expect to undertake property transactions in the near future, we recommend you seek our advice at an early stage, so we can make you fully aware of the CGT implications and formulate a plan to minimise them. 

INHERITANCE TAX – THE LEGACY YOU DON’T WANT TO LEAVE

When planning to pass on your wealth to your family, it’s important to balance your desire to maintain your standard of living with providing generously for future generations. Inheritance Tax (IHT) doesn’t just come into play on your death, but can also affect you now.  

For example, if you currently own or have an interest in a business, you could potentially use Business Relief to reduce its value when calculating IHT. This could result in a substantial reduction to the IHT payable by your loved ones, therefore saving you having to divest yourself of money or assets during your lifetime to achieve the same goal. 

We can help by quantifying your current exposure to IHT, providing guidance on a range of IHT mitigation strategies, including charitable giving, lifetime giving and Trusts and Family Investment Companies, and considering the interaction of IHT with other taxes. 

MORE THOUGHTS ON SUCCESSION & ESTATE PLANNING

It often happens that parents or close relatives will give younger members of the family an asset, such as land or property, but continue using it themselves. If that’s something you’ve done or were thinking of doing, then beware – you may be liable to POAT (Pre-Owned Assets Tax). POAT is payable annually, which may come as an unwelcome surprise, but there are ways to avoid it. We can advise on how estate planning can achieve this. 

With estate and succession planning, there is an obvious crossover with other aspects such as ensuring your Will is up to date and reflects any tax-efficiency changes you have made. We work closely with other professionals, such as lawyers, land agents, stock brokers, bankers and financial advisors, whose services we can recommend to enable you to benefit from joined-up, practical and convenient advice.