Bisulfide

It s not long before the end of the tax year comes near. It is vitally important to make use of any allowances and tax breaks that are useable.
By using the allowances and annual exemptions you will bring down your tax bill considerably. This can ordinarily be done quickly and easily with the advice of a 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 a regular income and are one of the most tax efficient investment vehicles obtainable

Pensions

Pensions are also a tax efficient way of planning for retirement. Most individuals can contribute up to £3600 gross each twelvemonth and obtain basic rate tax relief on the contribution made. 40% taxpayers can claim the residue on their self assessment.

Capital Gains Tax Planning

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

Income Tax Opportunities

Each person can receive a personal allowance of £6,475 without acquiring any income tax. For wedded couples or civil partnerships, where one is a 40% taxpayer it is worthwhile looking to see who owns the investment and possibly look to transfer assets into the
basic rate taxpayers name.Making gifts is also a means of reducing your liability to income tax.

IHT planning

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

If you believe your estate could be above the IHT nil rate band then good tax planning can be used to bring down your estates potential inheritance tax liability. This could be a suitably drafted will or alternatively trust planning.

Consilium Asset Management are Financial Advisors based in Chipping Sodbury, Bristol, South Gloucestershire.

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