Tax Planning
Individuals liable for UK tax are likely to be affected by three forms of personal
taxation:
• Income tax
• Capital gains tax
• Inheritance tax
General awareness of income tax is probably the greatest as it impacts upon most
forms of regular income. Earnings, interest on savings and dividends on shares all
attract income tax, which is often deducted at source by the employer, bank or share
registrar concerned. In some circumstances, such as where one partner pays higher
rate income tax, there may be scope to reduce the couple’s overall income tax liability.
Capital gains tax arises when certain types of asset, excluding the main residence,
are sold and produce gains above a specified level during any one financial year.
By planning the extent and timing of realisations, liability for CGT may be mitigated.
As for inheritance tax, this may have a big impact upon how much of an individual’s
assets pass to their beneficiaries. Again, careful planning in advance can minimize
or even eliminate an IHT liability.
A Park Row adviser will be able to advise on how to be as tax efficient as possible,
whatever the circumstances. For example, investment planning for widows or widowers
can help give them a consistent income. Reinvestment of directly-held equity portfolios
may save CGT or make investments easier to manage. You may even need to consider
making provision for long-term care. These and many more issues can be complex but
Park Row advisers will help you to address them for a more secure future.
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The FSA does not regulate tax planning
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