Tax planning
Making sense of tax
Personal tax can be complicated. Rules and allowances change and it’s all too easy to overpay.
Whether it’s making the most of pension contributions or understanding the implications of capital gains tax, we can guide you through the maze with a plan that will help make a difference to your long-term finances.
Why tax planning matters
We all need to pay tax but with careful planning, you shouldn’t pay more than you need to.
By using tax-efficient options like ISAs, investment bonds and pensions, you can grow your savings while keeping more of what you earn. Spreading your investments across different tax-efficient structures can also help you build a more reliable income when it comes to retirement.
Pensions remain one of the most valuable tools for tax planning, offering relief at your highest rate of tax. However, it’s important to understand the limitations, for example, what level of tax-free cash you can take on retirement. In the meantime, knowing what you can contribute might help you avoid unexpected charges so you can continue saving tax-efficiently.
Good planning also plays a vital role in protecting your estate for future generations. Inheritance tax (IHT) has been called a ‘voluntary tax’ for a reason: planning is getting more challenging but, with the right advice, there are often ways to reduce or even eliminate an IHT liability. This might be through gifts, charitable giving, trusts or business reliefs.
What you need to know
Tax laws may change and taxation will vary depending on your own personal circumstances.
Investments can go up and down in value and you may not get back the full amount you invest.