Tax and Trust Planning
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.
TAX ADVICE WHICH CONTAINS NO INVESTMENT ELEMENT 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.
Trust Planning
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.
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).
Find out More »
Taxation.
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 »
Inheritance Tax.
The Inheritance Tax threshold remains unchanged for 2024/25 at £325,000, whilst the residence nil rate band has increased to £175,000. This means individuals (with direct descendants) may be eligible for the additional residence nil rate band, so on death they can pass on more of the value of their estate, tax free, to their children or grandchildren.
The Residence Nil Rate Band is where each eligible individual can claim an additional inheritance tax allowance of £175,000 (tax year 2024/25), (reducing by £1 for every £2 that an estate exceeds £2,000,000) to offset the value of a family home on death, on top of their existing £325,000 inheritance tax exemption.
This Residence Nil Rate Band is set to £175,000 in 2024/25 and thereafter will increase with inflation each tax year. It can only be claimed where a main residence is passing to direct descendants on death and the amount can't exceed the property value.
Venture Capital Trusts
These are designed to encourage individuals to invest indirectly in a range of small higher-risk trading companies whose shares and securities are not listed on a recognised stock exchange, by investing through Venture Capital Trusts. So, if you invest in a VCT, you spread the investment risk over a number of companies.
A Venture Capital Trust is only suitable for certain individuals. Please speak to a financial adviser before investing in these types of products.
Your capital may be at risk
Enterprise Investment Scheme
The Enterprise Investment Scheme (EIS) is designed to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies.
An Enterprise Investment Scheme is only suitable for certain individuals. Please speak to a financial adviser before investing in these types of products.
Your capital may be at risk
Spousal bypass trusts
Commonly the death benefits from a pension scheme are distributed to a surviving spouse and therefore an inheritance tax charge may occur on the death of the surviving spouse, when the assets are passed to the next generation. Spousal bypass trusts avoid death benefits passing directly to a spouse and so they will not form part of the spouse's estate.
TAX ADVICE WHICH CONTAINS NO INVESTMENT ELEMENT IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY
THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.