Have you done your year end tax planning?

year end

Have you done your year-end tax planning?

By Sharron Fletcher CTA, Partner at RAE Business & Property Services

As we are approaching the end of the UK tax year ending 5 April 2015, my blog this week covers actions you may wish to take before the end of the tax year.

Income Tax

Reduce your income tax bill by:

  • giving funds to your spouse
  • swapping salary for benefits
  • gearing up your buy-to-let property
  • reviewing your entitlement to furnished holiday lettings and taking action if you need to claim a grace period
  • taking action to keep your child benefit
  • reviewing your income producing assets and considering swapping them into exempt or capital gains producing assets
  • considering investing in an enterprise investment scheme or seed enterprise investment scheme
  • making sure that you carry back trading losses (capped at £50,000)

Capital Gains Tax

Maximise your capital gains tax reliefs by:

  • claiming losses on unquoted shares
  • considering letting a home that is no longer or soon will no longer be your main residence
  • swapping your elected main residence
  • maximising the use of past capital losses
  • not forgetting to utilise your annual exemptions
  • considering ways to access entrepreneurs’ relief to pay only 10% capital gains tax

Pensions

Make the most of your pension by:

  • maximising your pension contributions to fully claim your annual contribution limits (including carry back)
  • by considering taking a pension draw down if over 55
  • by considering swapping part of your salary for a pension contribution

Inheritance Tax

Review your IHT position before it is too late and consider:

  • moving assets into IHT exempt assets
  • making charitable gifts
  • gifting funds away to family members
  • ensuring that your will is up-to-date
  • reviewing whether a trust is beneficial for your family
  • ensuring that you have put in place planning to pass on your pension tax free

Investments

Make sure that you’re aware of the tax implications of an investment before you make it

  • try to pay the maximum into your ISAs before the end of the tax year
  • consider investing in enterprise investment schemes, seed enterprise investment schemes and venture capital trusts
  • have a look at community and social enterprise investments
  • maybe consider investing in a vintage car or even woodlands
  • are you aware of the tax benefits of investing in life assurance bonds?
  • review whether setting up a family investment company will be beneficial for your family

As you can see, there is a lots to consider … but if you take the time and take the right advice from your accountant and independent financial advisor, you’d be surprised at how much you can increase your wealth by careful financial and tax planning.

Author:  Sharron Fletcher CTA, Partner at RAE Business & Property Services.  Call 07587 709008 or email sfletcher@raeyorkshire.co.uk

www.raeyorkshire.co.uk

@raebusiness

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