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It s not very long before the final stage of the tax year nears. It is very important to make the most of any personal allowances and tax breaks that are available.
By using the annual exemptions and allowances you might bring down your tax charge considerably. This can usually be done promptly and easily with the assistance of a financial advisor.

Tax effective investments

Individual savings accounts
Individual Savings Accounts (ISAs). If you are aged over 50 your Isa allowance for the present tax year is now £10,200. ISA’s are free from capital gains tax, can be used to provide an income and are one of the most tax efficient investment products obtainable

Pensions

Pensions are also a tax effective way of planning for retirement. Most individuals can pay up to £3600 gross each twelvemonth and obtain basic rate tax relief on the payment made. Forty percent taxpayers can claim the remainder on their self assessment.

Capital Gains Tax Planning

If you have made profits on certain types of investments you may be able to use your annual capital gains tax allowance. This will let you to make gains up to this level without incurring a liability to pay tax. In some cases it is also viable to carry forward past year’s losses.

Income Tax Opportunities

Each person can receive a personal allowance of 6475 without incurring any income tax. For married couples or civil partnerships, where one is a 40% taxpayer it is worthwhile looking to see who owns the investments and perhaps look to transfer assets into the
BR taxpayers name.Making gifts is also a way of keeping down your liability to income tax.

Saving IHT

An individual can give an IHT exempt gift each year of up to Three thousand pounds in a tax twelvemonth. Any unused exemption can be carried ahead for one yr only. If you are able to make gifts out of income without it altering your standard of living you may be allowed to make gifts over the yearly exemption level.

If you think your estate could be above the IHT nil rate band then good tax planning can be employed to cut back your estates future inheritance tax liability. This could be a suitably drafted will or alternatively trust planning.

Consilium Asset Management are IFA s based in Chipping Sodbury, Bristol, South Gloucestershire.

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