Tax Planning

Inheritance tax

As we know there are only two certainties in life, death and taxes which is why most people feel that they have paid enough tax throughout their lifetime. However, without proper Inheritance Tax Planning, you could end up with a further liability on your death, thereby reducing the value of your estate.

Even with the recent changes to the Nil Rate Band, UK house prices, particularly in London and the South East, mean that many of us will be caught by the tax threshold. Proper planning can ensure that it is your family that benefits from your lifetime’s work and not the Government. So in order to avoid a large inheritance tax bill you should consider the following

  • Write a will
  • If you own your home jointly, ensure that you own your own home in a tax efficient manner
  • Consider using trusts wherever possible
  • Use any tax relief and allowances such as making annual gifts
  • Check your employer funded benefits are protected
  • Review your investments from a tax efficiency point of view
  • Consider charitable donations; these can reduce your IHT bill (known as 10% for 10%)

Our team of expert advisers have a thorough knowledge of the tax rules and can help you design a solution that ensures you preserve as much of your family’s wealth as is legally possible.

Capital Gains Tax(CGT)

There are important annual allowances available for CGT and it is imperative that this is utilised on an annual basis as it is available on a use it or lose it basis. Effective capital gains tax management can significantly boost the overall return of an investment so it is imperative that you choose an adviser who can manage your investments tax efficiently.

Some investment tax wrappers are exempt from CGT altogether and this can play an important role in managing this tax for you. By sheltering your investments in an ISA wrapper capital gains are exempted from CGT completely. Likewise Life Insurance Investment bonds are never subject to CGT; so there may be some circumstances when it may be appropriate to consider them

Selection of the correct tax wrapper for you is essential and our highly qualified advisors can guide you through this complex area to maximise the tax efficiency of your portfolio.

Income Tax

Income produced by most investments will be liable to tax at your marginal rate. This means that you could be earning between 10 and 50% less than you think. Placing your investments in the correct tax wrapper could reduce or eliminate this tax altogether which will help boost returns.

In addition to protecting your investments from CGT, the ISA wrapper also removes any personal liability to income tax on any income. Other tax wrappers can also have favourable tax treatment too which means that it is so important to select the right product for your particular circumstances.

In addition to mitigating tax on returns, pensions can actually help you reduce tax you have already paid. Personal contributions to pension schemes are granted tax relief at your marginal rate. This means that you can use it to get the Government to pay some of the cost of your contribution thereby reducing the cost to you or to reclaim tax you have already paid.

Careful planning can help you mitigate or eliminate an Income Tax liability completely. It is therefore imperative that you take properly qualified advice to ensure that you maximise the benefits available.

The Financial Conduct Authority does not regulate will writing and taxation and trust advice.

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Please remember that the value of your investment can go down as well as up and you may get back less than you have invested. The Financial Conduct Authority does not regulate taxation advice. Equity release: This is a Lifetime Mortgage. To understand the features and risks, please ask for a personalised illustration. There may be a fee for equity release advice. The precise amount of the fee will depend upon your circumstances.

Executive Advisory Services Ltd
67 Lower Road . Cookham . Maidenhead . Berkshire . SL6 9HF
Telephone: +44 (0)1628 532320 . Click here to email us