The Occult Bot

It s not very long before the close of the tax year approaches. It is essential to make use of any allowances and tax breaks that are .
By using the exemptions and allowances you might be able to bring down your tax charge substantially. This can normally be done promptly and easily with the help of a financial adviser.

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 investments that can be used

Pensions

Pensions are also a tax effective way of planning for retirement. Most individuals can contribute up to £3600 gross each tax year and obtain basic rate tax relief on the payment made. Forty percent taxpayers can claim the balance on their self assessment.

Capital Gains Tax Planning

If you have made gains on certain types of investments you may be able to use your annual capital gains tax allowance. This will enable you to make gains up to this amount without acquiring a liability to tax. In many examples it is also viable to carry forward previous year’s losses.

Income Tax Opportunities

Each person can receive a personal allowance of 6475 without incurring any income tax. For espoused couples or civil partnerships, where one is a high rate taxpayer it is worthwhile looking to see who owns the investments and perhaps look to transfer assets into the
20% twenty percent taxpayers name.Making gifts is also a means of keeping down your liability to income tax.

Inheritance Tax opportunities

Each individual can give an IHT exempt gift each year of up to £3000 in a tax twelvemonth. Any unused exemption can be carried forward for one year only. If you are able to make gifts out of income without it changing your standard of living you may be allowed to make gifts over the annual exemption limit.

If you consider your estate could be in excess of the Inheritance Tax nil rate band then efficient tax planning can be utilized to bring down your estates potential IHT liability. This could be a suitably drafted will or alternatively trust provision.

Consilium Asset Management are Financial Advisers based in Bristol.

If you are a ifa we have launched Financial Vision. Financial Vision provides an financial advisor website design implementation service to the financial services industry.

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