Tax may be an unavoidable part of life, but by taking a comprehensive view of your financial situation, making the best use of the available tax allowances and arranging your financial affairs to suit your individual tax position, then many tax liabilities can be significantly reduced.
Income Tax is levied on most forms of income, earned or otherwise, at rates between 20% & 45%, but the system has many quirks which can cause you to pay tax unnecessarily. There are a large number of ways it may be possible to reduce your Income Tax bills, most significantly for those receiving investment income.
Capital Gains Tax is charged on gains that may arise, for example, from the sale of shares, or a second home, and is taxed at rates from 18% to 28%. However, a little careful planning can help to save a lot of tax, including special financial products that can help you minimise or defer your capital gains tax liability.
Inheritance Tax is a tax charged on your estate on death and certain lifetime transfers. The simple fact is that you do not have to be wealthy for your estate to be subject to Inheritance Tax, which is charged at 40% and is usually paid unnecessarily due to poor financial planning. The good news is there are a host of ways to reduce this liability. For example, by passing assets into certain types of trusts, you can reduce the value of your estate for Inheritance Tax purposes whilst still receiving an income. If the trust on your death passes to your grandchildren for example, it could be decades before your money is again under the eye of the taxman.
Inheritance Tax Planning is often the most complex area of financial planning, as the decisions made can have long term effects for clients and their families. This is especially true where trusts are used, as gifts above a certain level to certain types of trusts can attract an immediate tax charge, and can also effectively remain in the value of the estate in certain situations should the donor die within 14 years.
With Inheritance Tax planning, the need for highly qualified professional advice is absolutely essential.
At Coast to Coast, we have the specialist Chartered qualifications, expertise and experience that enables us to provide personalised independent financial advice for your individual tax planning needs, no matter how complex they may be, with a special focus on Inheritance Tax planning. By carefully analysing your current situation and considering all the possible alternatives, we can then make the tax planning recommendations that are right for you.
Please note we offer a free initial consultation without obligation.
Estate planning, trust planning and tax planning are not regulated by the Financial Conduct Authority.
Tax treatment is based on individual circumstances and may be subject to change in the near future.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.