Basel Labs

its not long before the end of the tax year comes near. It is so essential to make the most of any personal allowances and tax breaks that are .
By using the exemptions and allowances you might be able to reduce your tax charge substantially. This can ordinarily be done promptly and easily with the advice of an independent financial adviser.

Tax effective investments

Individual savings accounts
Individual Savings Accounts (ISAs). If you are aged over 50 your Isa allowance for the present 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 products available

Pensions

Pensions are also a tax effective way of planning for retirement. Most individuals can pay up to £3600 gross each twelvemonth and obtain basic rate tax relief on the payment. Higher rate taxpayers can claim the remainder on their self assessment.

Capital Gains Tax Planning

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

Income Tax Planning

Each individual can have a personal allowance of £6475 without acquiring any income tax. For espoused couples or civil partnerships, where one is a forty percent taxpayer it is worth looking to see who owns the investments and perhaps look to transfer assets into the
BR taxpayers name.Making gifts is also a way of keeping down your liability to income tax.

Inheritance Tax opportunities

An individual can give an IHT exempt gift each year of up to Three thousand pounds in a tax yr. Any unused exemption can be carried forward for one year only. If you are able to make gifts out of income without it changing your standard of living you might be able to make gifts above the annual exemption limit.

If you believe your estate could be in excess of the IHT nil rate band then effective tax planning can be employed to reduce your estates likely inheritance tax liability. This could include a appropriately drafted will or instead trust provision.

Consilium Asset Management are IFA’s based in South Gloucestershire.

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