Webjugate

It s not long before the ending of the tax year comes near. It is vitally important to make the most of any personal allowances and tax breaks that are useable.
By using the exemptions and annual allowances you will reduce your tax charge considerably. This can ordinarily be done quick and easily with the help of a financial advisor.

Tax effective investing

Individual savings accounts
Individual Savings Accounts (ISAs). If you are aged over 50 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 annual income and are one of the most tax efficient investment vehicles available

Pensions

Pensions are also a tax efficient way of planning for retirement. Most individuals can pay in up to £3600 gross each year and obtain basic rate tax relief on the payment. 40% taxpayers can claim the residue 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 annual capital gains tax allowance. This will allow you to make gains up to this amount without getting a liability to pay tax. In some examples it is also possible to carry forward past year’s losses.

Income Tax Opportunities

Each person can receive a personal allowance of 6475 without acquiring any income tax. For wedded pairs or civil partnerships, where one is a higher rate taxpayer it is worthwhile looking to see who owns the investment and perhaps look to transfer assets into the
20% twenty percent taxpayers name.Making gifts is also a means of cutting your liability to income tax.

Saving Inheritance Tax

An individual can make an IHT exempt gift each year of up to Three thousand pounds in a tax year. Any unused exemption can be carried forward for 1 year only. If you are able to make gifts out of income without it altering your standard of living you might be allowed to make gifts over the annual exemption limit.

If you consider your estate could be above the IHT nil rate band then effective tax planning can be employed to cut back your estates likely inheritance tax liability. This could be a suitably drafted will or instead trust provision.

Consilium Asset Management are IFA’s based in Bristol, South Gloucestershire.

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