Managing your affairs and saving tax
There is no simple answer as to how you can pay less tax but Mackarness & Lunt can advise you how to carefully plan to reduce future taxation.
The three main personal taxes are:
Naturally this is a tax on income and most of us will pay this tax in one way or another.
Employees pay by way of a coding notice and tax is deducted from their salary.
People who have retired or do not work and are subject to tax may receive a tax return form for completion each year. If you need help in completing these complicated forms then please contact us.
It is always worth having your Income Tax position reviewed, as possibly you may be paying more tax than you need to. If you need assistance with your Income Tax Return form we can prepare this for you.
Capital Gains Tax
Capital Gains are calculated in a different manner to income and Income Tax.
A range of exemptions and relief’s exist e.g. the annual exemption, indexation and taper reliefs.
Not all assets attract Capital Gains Tax e.g. your principal private residence, betting winnings and certain tax free investments.
This tax may apply on a disposal which may be by way of a sale or a gift.
If you dispose of any asset you should be aware of the Capital Gains Tax implications of this and it is far better to check the position first with us before proceeding as sometimes the tax liability can be reduced whereas after the asset has been disposed of it is often too late.
This is a combined gift and death tax.
Most gifts made during lifetime will not attract an immediate charge. Gifts made more than seven years before death are normally exempt from tax.
On death, all assets including the value of the deceased’s joint property, any lifetime gifts and the value of any Trusts or Settlements from which the deceased was entitled to benefit during their lifetime are potentially subject to tax.
The first part of an estate known generally as the “nil rate band” is free of tax but any excess will be subject to Inheritance Tax. Gifts to your spouse or to charity are normally tax free. Certain types of assets in your estate may also escape tax.
Tax planning is always worth considering even if your estate is modest as many estates still become liable to this tax.
If you have any questions then please contact Michael Parr or Sarah Baker.