End of Year Tax Advice
its not long before the close of the tax year comes near. It is so important to make the most of any allowances and tax breaks that are .
By using the annual exemptions and allowances you might bring down your tax bill substantially. This can normally be done quickly and easily with the advice of a financial advisor.
Tax effective investments
Individual savings accounts
Individual Savings Accounts (ISAs). If you are aged over fifty your Isa allowance for the actual tax year is now £10,200. ISA’s are free from capital gains tax, can be used to provide an annual income and are one of the most tax efficient investment vehicles that can be used
Pensions
Pensions are also a tax efficient way of saving for retirement. Most individuals can pay up to three thousand six hundred pounds gross each yr and obtain basic rate tax relief on the contribution made. Higher rate taxpayers can claim the residual on their self assessment.
Capital Gains Tax Opportunities
If you have made profits on certain types of investments you may be able to use your yearly capital gains tax allowance. This will enable you to make gains up to this level without getting a liability to pay tax. In some examples it is also possible to carry forward previous year’s losses.
Income Tax Opportunities
Each person can have a personal allowance of £6475 without acquiring any income tax. For married pairs or civil partnerships, where one is a higher rate taxpayer it is worthwhile looking to see who owns the investments and possibly look to transfer assets into the
BR taxpayers name.Making gifts is also a way of cutting your liability to income tax.
Saving Inheritance Tax
An individual can make an IHT exempt gift each year of up to 3,000 in a tax yr. Any unused allowance can be carried ahead for one year only. If you are capable to make gifts out of income without it altering your standard of living you might be able to make gifts over the yearly exemption limit.
If you believe your estate could be in excess of the IHT nil rate band then effective tax planning can be employed to cut back your estates potential inheritance tax liability. This could be a appropriately drafted will or alternatively trust provision.
Consilium Asset Management are IFA s based in Chipping Sodbury South Gloucestershire.
If you are a independent financial adviser we have set up Financial Vision. Financial Vision provides an IFA website design implementation service to the financial services industry.
