Tax Planning

The UK tax system is complex; however, there are often simple steps that you can take to mitigate any tax liability. The key to successful tax planning is to seek advice before taking any action, otherwise you may find it is too late to minimise your tax liability and you may even have inadvertently increased it!

Any steps you take to reduce a tax liability need to compliment your overall financial planning and objectives – otherwise you run the risk of “The tax tail wagging the dog”. For example, couples should look to equalise income where appropriate to utilise unused personal allowances, or to ensure that income producing assets are not liable to higher rate Income Tax wherever possible. Higher rate taxpayers can consider making pension contributions or invest into certain qualifying investments to reduce the amount of Income Tax they pay.

Before disposing of or transferring any personal or business assets, you should seek advice as often steps can be taken to mitigate any potential Capital Gains Tax liability. Inheritance Tax is often referred to as a voluntary tax, as effective planning could significantly reduce (or negate) your potential IHT liability.

With careful planning, your business may be able to reduce any potential Corporate Tax liability by timing any disposal of assets, extracting profits in the most tax efficient manner or by making pension contributions for the shareholders, directors or other key staff. Please note that we only provide tax advice as part of any planning that we undertake for our clients and it may be necessary for you to seek advice from a specialist tax adviser. We work closely with Mabe Allen LLP Chartered Accountants, who are based in Derby – please visit their website www.mabeallen.co.uk for further information regarding the services that they can offer.

The FCA does not regulate taxation advice.

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