UK TAX SOLUTIONS
We offer a range of expert advise and planning solutions for UK Taxes, including:
Capital Gains, Inheritance Tax, Annual Income Tax and Corporate Restructuring.
Read through our planning solutions or contact us now for a free consultation.
CAPITAL GAINS TAX
Are you making best use of the annual allowances, gift rules and statutory reliefs? Are you thinking of updating your property portfolio?
You may have to pay Capital Gains Tax if you make a profit when you sell (or dispose of) property that’s not your home, for example:
We can provide expert advice on how to avoid triggering any capital gains tax and protect assets from inheritance tax. Read more about our inheritance tax solutions below or contact us for a free consultation.
The family home is often the most valuable asset you own and can prove problematic when planning for Inheritance Tax (IHT), however there are many ways to resolve this.
Inheritance Tax is paid if a person’s estate (their property, money and possessions) is worth more than £325,000 when they die (£650,000 for married couples and civil partners). This is called the ‘Inheritance Tax threshold’ and anything above that is taxed at 40%.
The Government has now recognised that many people’s homes have significantly increased in value in recent times whilst the IHT threshold has remained frozen. Therefore, they have introduced a new residence nil rate band (RNRB). This also means many Wills could be out of date and some people may not benefit from this new tax break. The RNRB allows couples to pass on a £1m family home free from Inheritance Tax.
From April 2017, each individual can claim an additional allowance of £100,000 to offset the sale of a family home on death. This tops up the existing £325,000 exemption. The additional allowance increases by £25,000 each year until April 2020.
This means a couple with £1m family home can pass it on free from tax, however anything over £2m will reduce this allowance. It’s a complicated calculation so if you’re in doubt about your situation please contact us.
Income tax is paid on an individual’s personal income, and depends on the income level. In the United Kingdom currently, the basic rate is 20% of an individual’s taxable income rising to 45% over £150k p.a. Check out your personal allowances and tax rates here.
There are many ways for employers to reduce tax by using some of the following tactics:
Certain employee benefits to can offer tax advantages
Company cars offer incentive but can add extra tax
Tax relief on pension contributions
Investment savings such as ISA's
Self-employed individuals and business owners can benefit hugely from effective tax planning. Reliefs are available in many ways against business expenses such as:
business mileage or fuel
professional fees and subscriptions
tools and clothing
some household expense and travel costs
Corporate restructuring can be rife with tax trigger points from simply amending share percentages to more complex arrangements.
Profit extraction is now well documented, however, with an eye for commerciality, there can still be an opportunity for tax efficient awards. Freezer shares offer a number of planning opportunities such as adding other family members for generation planning.
For further information, factsheets or advice on your situation, please contact us.