Tax & Estate Planning Overview
Many people pay too much tax, either out of misunderstanding or poor planning and this is where sound financial planning can help.
Taxes can be levied directly (e.g. income tax) or indirectly (e.g. VAT on goods and services);
Your UK tax liability depends on your residence and domicile;
You will be deemed a UK resident if you are in the UK for 183 days in any one tax year.
It is important to identify ways to save tax to ensure that your financial affairs are run in a tax-efficient manner. These are just some of our top tax saving tips:
Move assets into investments that are exempt from capital gains tax. (Capital gains tax is charged on the profit made from the disposal of an asset);
Time the disposal of assets to spread over two tax years, wherever possible;
Carefully select assets to sell to minimise tax or generate tax-free income;
Non-tax payers to invest in products that do not deduct tax, or where tax is reclaimable;
Receive income from investments owned by the partner with the lowest tax band;
Make effective use of any tax breaks and gross-paying, tax-free investments (higher band taxpayers only.
In the following section, you will find information on the most effective and tax-efficient investment products including Enterprise Investment Schemes and Venture Capital Trusts.
We have also outlined the essentials of Inheritance Tax Planning to help you gain a deeper understanding of current rules and regulations.