Tax, Trust & Estate Planning
TAX PLANNING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY
TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE.
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. This is where we can advise you.
Our UK tax year runs from 6 April through to 5 April. During this time everyone is required to pay an appropriate level of income tax on their earned income, which helps to pay for things like healthcare and education. As well as income tax, you can also be liable for capital gains tax on profits you make from any chargeable assets you have sold, or for tax on gifts you have made during your lifetime.
Trust Planning helps you to manage assets for the future, so that you can plan ahead and know that taxation is being mitigated.
Since trusts usually avoid probate, your beneficiaries may access these assets quicker than they might access assets that are transferred using a will.
As a consequence of increasing property prices more people than before have found themselves being caught liable to Inheritance Tax. If your estate is over the inheritance tax allowance when you die, it will also be subject to a tax, known as inheritance tax.
There are a wide range of investment products which are acceptable to HM Revenue and Customs and which enable investors to reduce their potential liability to either income tax or inheritance tax or both.
Pension scheme members can also reduce their family's liability to inheritance tax on the value of the member's death benefits by arranging spousal bypass trusts.
Ultimately, financial planning will focus on what happens to the estate when you are no longer around, we can help by talking to you about the importance of making a will and the basics of inheritance tax. Should you then wish to find out more about estate planning and inheritance tax we can arrange an initial discussion.
Investments which form part of a deceased's estate are re-valued at the date of death, so if they are sold there will be no capital gains tax to pay on any profits.
An additional service which most professional advisers are able to provide is cashflow forecasting. This uses specialist technology to calculate the period of time over which a given investment portfolio might be expected to meet identified needs for income and or capital.
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, like Individual Savings Accounts (ISAs) and working tax credits, though the dividends paid into an ISA account carry a 10% income tax credit which cannot be reclaimed.
See our Tax Tables »
The Inheritance Tax threshold remains unchanged for 2023/24 at £325,000, as has the family home allowance at £175,000. This means 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.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TRUSTS OR TAX PLANNING.
THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.