Tax planning is an important part of the work we do for our clients. It is perfectly legitimate to arrange your affairs so as to minimise the amount of tax for which you are liable.
Fortunately there are a number of ways that you can reduce the amount of tax you have to pay. The main areas we advise in are:
With increases in property values over recent years this is likely to be your largest tax bill. In the summer budget of 2015 measures were introduced to lighten the burden for property owners wanting to pass the family home down to their immediate family. Over the next 5 years £1m could be sheltered via this new allowance for a married couple. If your estate exceeds this amount however early planning is essential. We can discuss with you conventional trust planning options, as well as HMRC approved Business Property Relief schemes, all of which can be highly effective ways of mitigating your final tax bill. The latter can be particularly effective for those who leave things till late in the day.
We will ensure you make use of your annual allowances and that your arrangements are as tax efficient as possible. Annual ISA and Junior ISA allowances over time can help build a useful nest egg that can be used to provide tax-free income, school or university fees or rainy day money. For small business owners we can suggest ways of taking money out of your company as efficiently as possible, for example through making use of your spouse’s personal allowance. We will also look at how you can take pension benefits so as to maximise tax efficient income.
Capital gains tax
Most commonly this can be triggered by the sale of an investment property. Although it can at first seem as though you have a daunting tax bill, we will ensure you are aware of all of your allowances and reliefs. Very often we can reduce your CGT bill by a substantial amount. We can also advise on specialist tax products such as Enterprise Investment Schemes that can help mitigate CGT liabilities.
In all of the above areas we will work closely with your accountant and other professional advisers. We will be pleased to recommend a reputable firm should you need accountancy or legal advice.
For a number of clients their tax affairs are complicated by the fact that they are resident for tax purposes in more than one country. For these multi-jurisdiction scenarios we are pleased to recommend our associate law firms based in London and Paris, who will be pleased to discuss your situation with you.
The Financial Conduct Authority does not regulate taxation and trust advice.