Weiss Report Blog

It s not very long before the ending of the tax year nears. It is crucial to make the most of any personal allowances and tax breaks that are .
By using the exemptions and allowances you could potentially bring down your tax bill substantially. This can usually be done promptly and easily with the assistance of an ifa.

Tax effective investments

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 investments that can be used

Pensions

Pensions are also a tax efficient way of saving for retirement. Most individuals can pay up to £3600 gross each twelvemonth and obtain basic rate tax relief on the payment. 40% taxpayers can claim the balance on their self assessment.

Capital Gains Tax Planning

If you have made profits 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 amount without receiving a liability to pay tax. In some examples it is also viable to carry forward previous year’s losses.

Income Tax Opportunities

Each individual can have a personal allowance of £6,475 without incurring any income tax. For espoused pairs or civil partnerships, where one is a high rate taxpayer it is worth looking to see who owns the investments and possibly look to transfer assets into the
BR taxpayers name.Making annual gifts is also a means of cutting your liability to income tax.

Inheritance Tax Planning

Each individual can give an IHT exempt gift each year of up to £3000 in a tax yr. Any unused exemption can be carried ahead for 1 year only. If you are able to make gifts out of income without it affecting your standard of living you might be able to make gifts over the annual exemption limit.

If you consider your estate could be over the IHT nil rate band then good tax planning can be utilized to cut back your estates future IHT liability. This could include a suitably drafted will or instead trust planning.

Consilium Asset Management are independent financial advisers based in Chipping Sodbury South Gloucestershire.

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