Tax Planning Return to all services
There are a number of ways to reduce your tax bill that are completely legal. These strategies use tax allowances and reliefs to keep more of your money in your pocket. Our service can review your circumstances and assess where savings can be made both now and in the future.
There may be ways to reduce your income tax bill. Actions such as making additional pension contributions or gifts to charity could make a big difference.
With careful planning Capital Gains Tax (CGT) can be minimised, particularly over time. For example, if you have a unit trust holding, the value equivalent to the ISA allowance could be switched into an ISA wrapper each tax year. Once in the ISA wrapper the investment would become CGT exempt. The timing of investment encashment can also be important. If you have already utilised your annual CGT allowance, depending on the circumstances, it might be worth waiting until the next tax year before another encashment is made.
Inheritance tax (IHT) planning is another area where planning ahead can be really beneficial. Whilst IHT planning can be complex it can include straight forward actions such as using the annual small gifts allowance.