:Forest Folk

It s not very long before the end of the tax year comes near. It is so essential to make use of any allowances and tax breaks that are obtainable.
By using the exemptions and allowances you could potentially reduce your tax bill substantially. This can usually be done quickly and easily with the advice of a financial advisor.

Tax effective investments

Individual savings accounts
Individual Savings Accounts (ISAs). If you are aged over fifty 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 investments obtainable

Pensions

Pensions are also a tax efficient way of planning for retirement. Most people can contribute up to £3,600 gross each twelvemonth and obtain basic rate tax relief on the contribution made. Higher rate taxpayers can claim the residual on their self assessment.

Capital Gains Tax Opportunities

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

Income Tax Planning

Each person can have a personal allowance of 6475 without acquiring any income tax. For married pairs or civil partnerships, where one is a high rate taxpayer it is worthwhile looking to see who owns the investment and perhaps look to transfer assets into the
BR taxpayers name.Making gifts is also a means of reducing your liability to income tax.

Inheritance Tax Planning

Each person can make an IHT exempt gift each year of up to 3,000 in a tax year. Any unused allowance can be carried ahead for 1 yr only. If you are able to make gifts out of income without it altering your standard of living you might be able to make gifts over the annual exemption limit.

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

Consilium Asset Management are Financial Advisers based in Bristol, South Gloucestershire.

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