Personal Tax Planning
Are you paying too much tax – be it income tax, corporation tax or capital gains tax? Whatever your stage in life, we can help you to use a spread of financial options to maximise your tax allowances and optimise your exposure, so you lose as little as possible to HMRC and retain more of your hard-earned cash for security in later life. We can deliver practical ideas for a more efficient way of managing your money, making use of your pension, ISA, general investment account, bonds and possible other sources such as buy-to-let properties. By carefully structuring your income from each, we’ll position your money to work harder for you, so you are able to live the life you want.
Is there anything illegal about personal tax planning?
Intelligently using the allowances and benefits available to you from the government to reduce the amount of tax you pay is perfectly legal. It is tax evasion – using deception or concealment – that is illegal. A candid answer is that we and our clients enjoy our liberty and family life, and do not wish to see it curtailed by a prison sentence should we be found guilty of any wrongdoing. We can prepare your financial affairs in the most tax-efficient manner, minimising exposure to income and capital gains taxes, and can assure you that we would never write to you to advise doing anything illegal. We often work closely with our client’s accountants, for a joined up approach.
Which is best for my money in terms of tax - property or pensions?
It is probable that pensions will be more tax-efficient than property, and we would probably advise our clients to use pensions to grow their assets. However, a self-invested private pension (SIPP) can hold a property in a tax-efficient wrapper, so it may be possible to get the best of both worlds.
It is also worth noting that a buy-to-let property cannot go in a pension, only commercial property can be held by a pension. If simply being used as an investment, you would be at the mercy of the property markets, and while they have been buoyant in recent years that is no guarantee that they will continue to be so.
Should I consider emigrating from the UK?
It will depend on which tax(es) you want to avoid or reduce, and we could only give you a clear answer after investigating all the pros and cons, and the costs and benefits. If you move or live outside of the UK for tax reasons, this will create additional complications and you may find that you are not able to avoid the taxes you had hoped to for the entire duration of your time abroad, and you may still need to spend time in property in the UK. Added to this, depending on where you go, you may find the cost of living to be much higher than in the UK, and you are still having to pay for numerous trips back and forth to visit family or business interests. The upheaval to your life may not be worth the return.
Do you also complete my tax returns to HMRC?
You may have seen some financial advisers offering this kind of service, but we are not accountants, instead preferring to concentrate on the areas where we can perform best and offer our expert advice. However, we are able to help provide organised data to your accountants in an efficient manner, which will significantly speed up their reconciliation and processing.
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