The Lava Bot

It s not very long before the close of the tax year comes near. It is so essential to make use of any allowances and tax breaks that are useable.
By using the allowances and exemptions you might be able to bring down your tax charge considerably. This can usually be done quick and easily with the assistance of a financial adviser.

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 investments that can be used

Pensions

Pensions are also a tax effective way of saving for retirement. Most individuals can contribute up to 3,600 gross each twelvemonth and obtain basic rate tax relief on the payment made. Higher rate taxpayers can claim the remainder on their self assessment.

Capital Gains Tax Planning

If you have made profit on certain types of investments you may be able to use your yearly capital gains tax allowance. This will enable you to make gains up to this amount without getting a liability to pay tax. In some examples it is also viable to carry forward previous year’s losses.

Income Tax Opportunities

Each individual can receive a personal allowance of £6475 without incurring any income tax. For espoused couples or civil partnerships, where one is a 40% taxpayer it is worth looking to see who owns the investment and possibly look to transfer assets into the
20% twenty percent taxpayers name.Making gifts is also a way of keeping down your liability to income tax.

Saving Inheritance Tax

An individual can give an IHT exempt gift each year of up to 3,000 in a tax year. Any unused allowance can be carried forward for one yr 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 think your estate could be over the Inheritance Tax nil rate band then effective tax planning can be applied to cut back your estates future IHT liability. This could include a appropriately drafted will or alternatively trust provision.

Consilium Asset Management are Independent Financial Advisors based in South Gloucestershire.

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