It s not very long before the close of the tax year comes near. It is very important to make use of any personal allowances and tax breaks that are .
By using the allowances and annual exemptions you could potentially reduce your tax charge substantially. This can commonly be done promptly and easily with the assistance of an ifa.

Tax effective investing

Individual savings accounts
Individual Savings Accounts (ISAs). If you are aged over fifty your Isa allowance for the current tax year is now £10,200. ISA’s are free from capital gains tax, can be used to provide an annual income and are one of the most tax efficient investment products obtainable

Pensions

Pensions are also a tax efficient way of planning for retirement. Most individuals can contribute up to three thousand six hundred pounds gross each year and obtain basic rate tax relief on the contribution. Forty percent taxpayers can claim the residual on their self assessment.

Capital Gains Tax Planning

If you have made profits on certain types of investment you may be able to use your yearly capital gains tax allowance. This will let you to make gains up to this threshold without incurring a liability to pay tax. In many examples it is also viable to carry forward previous year’s losses.

Income Tax Planning

Each person can receive a personal allowance of £6475.00 without incurring any income tax. For wedded pairs or civil partnerships, where one is a 40% taxpayer it is worth looking to see who owns the investments and potentially look to transfer assets into the
BR taxpayers name.Making annual gifts is also a way of keeping down your liability to income tax.

Inheritance Tax Planning

Every individual can give an IHT exempt gift each year of up to 3,000 in a tax yr. Any unused exemption can be carried forward for 1 yr only. If you are capable to make gifts out of income without it changing your standard of living you might be able to make gifts over the yearly exemption limit.

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

Consilium Asset Management are independent financial advisers based in Bristol, South Gloucestershire.

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