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its not very long before the end of the tax year comes near. It is crucial to make use of any personal allowances and tax breaks that are available.
By using the exemptions and allowances you will potentially reduce your tax charge substantially. This can ordinarily be done quickly and easily with the advice of an independent financial adviser.

Tax effective investing

Individual savings accounts
Individual Savings Accounts (ISAs). If you are aged over 50 your Isa allowance for the actual 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 investments available

Pensions

Pensions are also a tax effective way of planning for retirement. Most people can pay up to 3,600 gross each yr and obtain basic rate tax relief on the payment. Forty percent taxpayers can claim the remainder on their self assessment.

Capital Gains Tax Planning

If you have made profit on certain types of investment you may be able to use your yearly capital gains tax allowance. This will enable you to make gains up to this level without incurring a liability to pay tax. In many examples it is also viable to carry forward past year’s losses.

Income Tax Planning

Each person can receive a personal allowance of £6475 without acquiring any income tax. For espoused couples or civil partnerships, where one is a high rate taxpayer it is worthwhile looking to see who owns the investments and potentially look to transfer assets into the
BR taxpayers name.Making annual gifts is also a means of reducing your liability to income tax.

Inheritance Tax Planning

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

If you believe your estate could be above the Inheritance Tax nil rate band then efficient tax planning can be employed to cut your estates future IHT liability. This could be a appropriately drafted will or instead trust provision.

Consilium Asset Management are Financial Advisers based in Chipping Sodbury South Gloucestershire.

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