Tax Planning


Our financial planning services include advice on how potentially to reduce the impact of tax on investments. This can involve transferring assets between spouses to move income from a higher rate taxpayer to one who is taxed at a lower rate. It can also involve the use of both Capital Gains Tax allowances.


We consider and recommend investments which enable investors to take advantage of their annual tax allowances or which shelter income or gains to a year in which a lower tax rate applies. Where a capital gain is realised and tax due, we will also look at legitimate ways in which the gain can be deferred to a later year, in which less or no tax will be due.


Inheritance Tax (IHT) is payable on death on the excess estate over £325,000 although transfers between married couples are exempt unless one is treated as non-UK domiciled.  Unused allowances can be transferred to the surviving spouse but a substantial tax liability will often still arise. We give advice on ways in which assets can be gifted to your heirs so as to be exempt from IHT.


This might include:


·         Using annual and other IHT exemptions which are lost if not used

·         Drafting tax-efficient wills

·         Making gifts during your lifetime

·         Investing in assets which are exempt from IHT

·         The use of tax-efficient trusts


When all other IHT saving options have been discounted, we will also consider converting modest annual sums into a substantial IHT free sum through life insurance.


Some families have substantial assets but cannot afford to give any cash away in case it is needed for Care Fees in due course. However, we can recommend certain trusts which are exempt from IHT on surviving seven years but which provide access to the capital every few years, if needs be.


It is also possible to make substantial gifts into trust, with an immediate IHT saving whilst retaining an income for life and, on surviving seven years, the value will be fully IHT exempt.


On death, pension funds can often pass to beneficiaries free from Inheritance Tax but not all schemes  allow this, causing an IHT liability if the beneficiary is not the surviving spouse or on that spouse’s subsequent death. We can review your pension schemes to see if you can take advantage of this new legislation or if any changes can be made to do so.

Please note, the Financial Conduct Authority does not regulate Tax Advice, Trust Advice and Will Writing.