Reducing your tax liabilities is not restricted to your business.
There are several ways to reduce personal tax bills too, many of which we often recommend through our range of probate services.
To find out what steps to take, read our latest Probate Service blog!
Using the gifting allowance
Did you know you can take advantage of the annual gifting allowance of £3,000 to offer one-off donations to your family and friends without being charged Inheritance Tax (IHT)?
Not used this allowance in a previous year? You can backdate this by one tax year to give gifts of up to £6,000.
Capital Gains Tax (CGT)
Can you take advantage of any exemptions, such as the annual CGT exemption?
The CGT annual exemption amount was increased to £12,300 for individuals and personal representatives and £6,150 for trustees of settlements for 2020 to 2021. This is now frozen until 2026.
Below are some other things you can consider:
- Maximising capital gains and income tax rates and allowances through inter-spouse transfers if your annual income is between £100,001 and £125,000.
- Exchanging part of your salary for payments into an approved share scheme or additional pension contributions.
These tips are useful for not only organising your tax affairs during your life but also preparing your estate for probate – the process of sorting out someone’s estate, their property, money and possessions after they’ve died.
And at Rotherham Taylor, we are here to provide expert advice to you on tax planning opportunities for your estate and your beneficiaries.
We are one of a small number of accountancy practices in the UK to be licensed to provide probate services by the Institute of Chartered Accountants in England and Wales (ICAEW).
