Whilst the calendar year is nearing its end, there are still a few months to go before the end of the tax year on April 5 2022.
The clock is now ticking to make use of the tax reliefs and allowances available to you and your business before the new tax year begins.
There are lots of steps you can take to reduce a potential tax bill – but careful planning is needed to help you make the most savings.
Ways to minimise your personal tax bill include:
- Boosting your pension – Consider boosting your pension and making the most of the allowances available to you.
- Disposing of shares and assets tax efficiently – By taking expert advice before any transactions.
- Inter-spouse transfers – You can maximise capital gains and income tax allowances as well as minimise rates through these exempt transfers.
- Salary vs Benefits – Exchanging part of your salary for payments into an approved share scheme or additional pension contributions could minimise liabilities.
- Inheritance Tax –You can give up to £3,000 per year without it being added to the value of your estate on death. Not given in previous years? You can backdate this exemption by up to a year, doubling the amount you can give in a single year.
- Charitable and personal gifts – If you leave at least 10 per cent of your net estate to charity a reduced rate of 36 per cent rather than 40 per cent applies.
- Passing on your pension – Update your will to ensure that your family receives the full benefit of any remaining pension fund.
- Trusts – There have been several changes to the treatment of trust funds recently, which are complex – so seek help.
There is also a wide range of tax-efficient investment options, which can help to reduce your liabilities.
Are you using or have you considered the following?
- Self administered pension funds
- ISA’s
- Venture Capital Trusts
- Portfolio of AIM shares
- Enterprise Investment Schemes
- Life Assurance Bonds
- Offshore Bonds
Tax planning is also essential before your financial year-end and before any material transaction.
At Lamont Pridmore, they have 50 tax-saving tips which, if fully utilised, could reduce your tax bill by over £686,425. This could drastically reduce the amount you pay – most of their clients are surprised by how much they save. They cut their clients’ tax bills by £8 million last year.
Every person’s approach to tax planning is different and is based around their income, assets and their aspirations.
Speak to Lamont Pridmore to find out why a tax planning meeting with their team of specialists might be the best gift you can give yourself this year. Contact them by calling 0800 2346978 or by emailing info@lamontpridmore.co.uk
