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its not very long before the ending of the tax year draws near. It is very important to make the most of any personal allowances and tax breaks that are available.
By using the allowances and annual exemptions you might possibly bring down your tax charge substantially. This can ordinarily be done promptly and easily with the help of a financial advisor.

Tax effective investing

Individual savings accounts
Individual Savings Accounts (ISAs). If you are aged over fifty your Isa allowance for the current 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 vehicles that can be used

Pensions

Pensions are also a tax efficient way of planning for retirement. Most people can pay up to three thousand six hundred pounds gross each yr and obtain basic rate tax relief on the payment. Forty percent taxpayers can claim the residue on their self assessment.

Capital Gains Tax Planning

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

Income Tax Opportunities

Each individual can receive a personal allowance of £6475 without incurring any income tax. For wedded pairs or civil partnerships, where one is a forty percent taxpayer it is worthwhile looking to see who owns the investments and potentially look to transfer assets into the
basic rate taxpayers name.Making annual gifts is also a way of cutting your liability to income tax.

Inheritance Tax Planning

Every Person can give an IHT exempt gift each year of up to Three thousand pounds in a tax yr. Any unused exemption can be carried forward for 1 yr only. If you are able to make gifts out of income without it changing your standard of living you might be able to make gifts above the annual exemption level.

If you believe your estate could be above the Inheritance Tax nil rate band then efficient tax planning can be employed to bring down your estates future inheritance liability. This could include a appropriately drafted will or alternatively trust provision.

Consilium Asset Management are Financial Advisors based in South Gloucestershire.

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