Careful Tax Planning to Minimise the Impact of Tax
20 February 2017
It's a good time to review your taxes and finances.
With the 5th April fast approaching, we at Daly Park believe it is a good time to review your taxes and finances in advance of the end of the tax year. Think of it as an opportunity to reduce your exposure to tax.
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 HMRC.
- Take advantage of the tax-free New Individual Savings Account (NISA) Allowance of £15,240.
- 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, the first £11,100 is tax-free. Married couples who own assets jointly can claim a double allowance.
- Effective Estate Planning can be used to mitigate potential Inheritance Tax liabilities.
- Using Trust Planning 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
- Ensure companies utilise their £200,000 Annual Investment Allowance.