Annual Tax Saving Opportunities
its not long before the end of the tax year nears. It is important to make use of any personal allowances and tax breaks that are .
By using the allowances and annual exemptions you will bring down your tax bill considerably. This can normally be done promptly and easily with the help of an independent financial adviser.
Tax effective investing
Individual savings accounts
Individual Savings Accounts (ISAs). If you are aged over fifty your Isa allowance for the current tax year is now £10,200. ISA’s are free from capital gains tax, can be used to provide an income and are one of the most tax efficient investments available
Pensions
Pensions are also a tax efficient way of saving for retirement. Most individuals can contribute up to three thousand six hundred pounds gross each yr and obtain basic rate tax relief on the contribution made. Forty percent taxpayers can claim the residual on their self assessment.
Capital Gains Tax Planning
If you have made profits on certain types of investments you may be able to use your annual capital gains tax allowance. This will allow you to make gains up to this level without receiving a liability to pay tax. In some examples it is also possible to carry forward past year’s losses.
Income Tax Planning
Each person can have a personal allowance of £6475.00 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 investment and potentially look to transfer assets into the
20% twenty percent taxpayers name.Making annual gifts is also a way of cutting your liability to income tax.
Saving IHT
Each person can give an IHT exempt gift each year of up to £3000 in a tax yr. Any unused exemption 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 allowed to make gifts above the yearly exemption level.
If you consider your estate could be above the IHT nil rate band then effective tax planning can be applied to reduce your estates potential inheritance liability. This could include a appropriately drafted will or instead trust provision.
Consilium Asset Management are Financial Advisers based in Chipping Sodbury, Bristol, South Gloucestershire.
If you are a ifa we have set up Financial Vision. Financial Vision provides an IFA website design service to the financial services industry.
