Careful Tax Planning To Minimise the Impact of Tax
25 February 2015
Tax Planning is a broad and complex area that excites few people.
It is easy to ignore the awkward issues it creates but the period leading up to the end of the tax year on 5th April is one of the best times to review your taxes and finances. Think of it as an opportunity to reduce your exposure to tax.
With careful tax planning it may be possible to mitigate taxes. We at Daly Park are committed to helping you accumulate, manage and preserve your wealth in the most tax-efficient way possible. To find out more, contact Shane O’Dowd at (028) 3832 4924 or by email at mailto:firstname.lastname@example.org.
Good planning and careful timing are critical if you want to maximise the tax reliefs or minimise the tax burden on a transaction or investment and to avoid penalties and interest from H.M. Revenue & Customs.
- Make sure your Tax Code is correct, don’t assume HMRC is always right
- Take advantage of the New Individual Savings Account (NISA) Allowance, the annual limit was increased to £15,000 from 1st July 2014 and interest earned is tax-free
- Save tax with pension contributions up to the allowance cap of £40,000, and utilise tax relief at your highest rate earnings
- Transferring assets could offer tax benefits particularly if your spouse/ registered civil partner pays a lower rate of tax than you
- Utilise your Capital Gains Tax allowance when you sell an asset that has increased in value. You are taxed on the gain, though the first £11,000 is tax-free. Married couples who own assets jointly can claim a double allowance
- Check your Inheritance Tax liability
- Setting up a Trust to reduce Inheritance Tax liabilities can be particularly effective for reliefs on businesses and agricultural properties
- Write a Will and keep it up to date to reflect changes in family situations
- Companies have until the end of 2015 to use their £500,000 Annual Investment Allowance
- From 6th April 2015 there are changes to tax that will affect Pensions, Married Couples, Non-Resident individuals, Non-Domicile individuals and Employers.