Should you wish to reduce your tax liabilities, we may be able to help you do so in a way that also boosts the UK economy, by using a variety of government-approved investment schemes. This planning can help you keep more your earned income or investment profits, and pass more on to your beneficiaries on death.
Income tax
Income tax is charged on your total income each year, and ranges from 20%-45% above the personal allowance. For those earning over £100k a large proportion of this will be subject to income tax at an effective rate of 60% due to higher tax bands and gradual loss of the personal allowance. By combining pension contributions and investing in certain products, we can help you manage your income tax, keeping more of your earnings.
Capital Gains Tax
Capital Gains Tax (CGT) is charged on the profit when you sell an asset which has increased in value. This could be on shares, property, art and more. Above your Annual Exempt Amount, CGT is charged at 10% or 20% (18% or 28% on residential property sales), depending on your Income Tax band. We can assist in managing these taxes by deferring the gains to future more advantageous years, or until death when unrealised gains are reset and tax is no longer payable.
Inheritance Tax
Inheritance Tax (IHT) is a tax on the estate (which includes property, money and possessions) of a deceased individual. There are many approaches to reducing this tax burden, including charitable and lifetime gifting, trusts, tax-efficient investments and life insurance. It is often not necessary to rely on giving your assets away during your lifetime to achieve this, and as such leaves them in your estate to enjoy throughout your retirement. We can help establish what your current IHT liability is and determine what combination of planning strategies would most effectively meet your objectives.
The Financial Conduct Authority does not regulate Taxation Advice. Taxation is based on current legislation which is subject to change and will also depend on the individual circumstances of each investor. Financial planning is a complex area which varies greatly depending on individual circumstances, and holistic independent financial advice should be sought prior to making any changes. Click here to book your free initial General Financial Review.