Tax & Estate Planning
It's important to make sure you aren't paying more tax than you need to. Taxation can be very complicated and the rules, reliefs and allowances often change.
We have a working knowledge of personal and business taxation but advice relating specifically to tax should come from the experts. We regularly work with a number of accountancy and legal firms and many of our current clients were originally referred to us by Mapus-Smith & Lemmon LLP Chartered Accountants.
Effective financial planning is only possible when it is considered alongside the potential tax implications. We will try to establish a good understanding of the current tax position but also to maintain it. There is little point achieving positive investment returns, whether it be income and/or growth, for this to then be undermined by tax liabilities/charges that may be legitimately avoidable.
Personal Tax Planning
At various times in your life you will be subject to one or more taxes on money that you earn/have. This includes Income Tax and Capital Gains Tax and, ultimately Inheritance Tax.
We cannot complete HMRC Tax Returns for you but we can help to ensure that, where appropriate, you make proper use of certain allowances and reliefs such as ISAs and Capital Gains Tax allowances.
Inheritance Tax Planning
Many clients now want guidance and advice planning their estate for the next generation, this increased interest at least in part a consequence of higher property values and little or no increase in the available allowance that is permitted to pass on free of tax.
There are many possible ways to reduce the eventual liability. We can help you to understand your options and advise on what is the most suitable course of action while ensuring that your lifestyle is maintained and secure.
There are a wide range of financial plans and products that could enable investors to reduce their potential liability to either income tax or inheritance tax or both.
Pension scheme members can may also be able to reduce their family's liability to inheritance tax on the value of pension death benefits by the way pension funds are left.
Ultimately, financial planning will focus on what happens to the estate when you are no longer around. We can help you to ensure that you will have what you need in the meantime and how to reduce the amount of tax payable.
Capital Gains Tax.
Individuals are entitled to an annual exemption. If you think that your investments have made substantial gains and you have not yet made use of your annual allowance, you should consider taking financial advice as you may be able to utilise your annual allowance, or reinvest in an ISA (subject to the ISA limits).
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Income Tax is a tax you pay on your income. You don't have to pay tax on all types of income. You pay tax on things like: money you earn from employment, most pensions, interest on savings etc.. You don't pay tax on things like: income from tax-exempt accounts, Individual Savings Accounts (ISAs) and certain state benefits such as Personal Independence Payment.
See our Tax Tables »
The Individual Inheritance Tax Allowance for tax year 2017/2018 is £325,000. From April 2017 individuals (with direct dependants) will be offered a family home allowance so they can pass their home on to their children or grandchildren tax-free after their death. Certain lifetime gifts can be made without giving rise to an inheritance tax charge. You can give away £3,000 worth of gifts each tax year (6 April to 5 April) and it is worth considering making a gift of this amount if you are in a position to do so.
Venture Capital Trusts
These are designed to encourage individuals to invest indirectly in a range of small higher-risk trading companies whose shares and securities are not listed on a recognised stock exchange, by investing through Venture Capital Trusts. So, if you invest in a VCT, you spread the investment risk over a number of companies.
A Venture Capital Trust is only suitable for certain individuals. Please speak to a financial adviser before investing in these types of products.
Your capital may be at risk
Enterprise Investment Scheme
The Enterprise Investment Scheme (EIS) is designed to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies.
An Enterprise Investment Scheme is only suitable for certain individuals. Please speak to a financial adviser before investing in these types of products.
Your capital may be at risk
Spousal bypass trusts
Commonly the death benefits from a pension scheme are distributed to a surviving spouse and therefore an inheritance tax charge may occur on the death of the surviving spouse, when the assets are passed to the next generation. Spousal bypass trusts avoid death benefits passing directly to a spouse and so they will not form part of the spouse's estate.