Tax Planning
Smarter Decisions
As part of the Financial Planning process we can​ assess your current tax position and help set up strategies to make the most of your allowances, and review changes to legislation as well as your own circumstances, to ensure you do not pay more tax than you need to.
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As part of the financial planning process we look at:
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Income Tax
Income tax and national insurance on your earnings from work or self employment
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Capital Gains Tax
The tax payable on any profit or "gain" which you make upon selling or disposing of certain assets such as second properties, businesses or shares outside of tax wrappers.
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Inheritance Tax
I.H.T. is the tax we pay on our estates with a value over the Nil Rate Band allowance of £325,000 and possibly the Residence Nil Rate Band £175,000.
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Corporation Tax
This is the tax that businesses pay on annual profits made over £50,000
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Key Tax Planning Strategies
Using Allowances
Ensuring that we are using all available allowances to their maximum is a key strategy behind tax planning. We help ensure that you are maximising your Pension and ISA contributions, making best use of any Dividends available, as well as advising on disposal of assets in the most efficient way possible to make use of the Capital Gains Tax Allowance.
VCT, EIS, SEIS
Several higher risk strategies are available such as Venture Capital Trusts (VCT), Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Schemes (SEIS) which will provide various tax advantages to investors. Each scheme offers slightly different tax benefits, but they can be a useful tool in helping to reduce Income, Capital Gains and Inheritance Taxes, but only if deemed suitable for a clients' circumstances and risk appetite.
Corporation Tax
Making pension contributions from business is an extremely efficient tax planning tool. It not only allows you to extract money from the business to you personally without any Income Tax or National Insurance liability, but also helps to reduce the Coporation Tax liability.
Investment Bonds
Onshore and Offshore investment bonds are tax wrappers which, when used as part of a long-term planning approach, can be an efficient way to grow money, as well as having certain advantages when drawing income, particularly for those who may be higher or additional rate tax payers.
The Financial Conduct Authority (FCA) does not regulate some aspects of Trust, Tax and Estate Planning
HM Revenue & Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
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Levels and bases of, and reliefs from, taxation are subject to change and their value will depend on personal circumstances.
Equally some of the investment strategies discussed are subject to significant risk and may not be suitable to all investors.
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It is imperative that any tax planning is discussed with a qualified financial planner as part of an overall financial planning strategy.