Day Debt

its not very long before the final stage of the tax year nears. It is crucial to make the most of any personal allowances and tax breaks that are .
By using the allowances and exemptions you might be able to reduce your tax bill substantially. This can commonly be done quick and easily with the help of a financial advisor.

Tax effective investing

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

Pensions

Pensions are also a tax efficient way of saving for retirement. Most people can contribute up to three thousand six hundred pounds gross each twelvemonth and obtain basic rate tax relief on the contribution made. Higher rate taxpayers can claim the residue on their self assessment.

Capital Gains Tax Opportunities

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

Income Tax Opportunities

Each individual can receive a personal allowance of £6475 without acquiring any income tax. For espoused couples or civil partnerships, where one is a 40% taxpayer it is worth looking to see who owns the investment and possibly look to transfer assets into the
BR taxpayers name.Making annual gifts is also a means of reducing your liability to income tax.

Inheritance Tax opportunities

Each individual can give an IHT exempt gift each year of up to 3,000 in a tax year. Any unused exemption can be carried ahead for one year only. If you are able to make gifts out of income without it changing your standard of living you might be allowed to make gifts above the yearly exemption level.

If you think your estate could be over the IHT nil rate band then effective tax planning can be used to bring down your estates future inheritance liability. This could include a appropriately drafted will or instead trust provision.

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

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