fbpx

Guest Blog: Taxes and how to avoid them

21-10-2015

Chris Davies Ross Brooke

We are delighted to share a guest blog post from Chris Davies from Ross Brooke Accountants on Taxes and how to avoid them.

There are many opportunities to save tax and there is nothing illegal or immoral ensuring that you pay as little tax as possible within the spirit of the law. I see many occasions when too much tax is paid unnecessarily and here are a few tips for minimising your own tax position:

Income Tax

This is the tax that you pay on your salary, profits and investment income. At rates up to 45% tax planning can be very worthwhile.

Capital gains tax

This is generally payable on the profit you make on the disposal of your assets eg shares and properties. At rates up to 28% it’s important to get things right.

Inheritance tax

If the value of an individual’s chargeable estate on death, together with the value of chargeable transfers in the previous 7 years exceeds £325,000, then the excess will be charged to IHT at 40%. However, with careful planning between client, solicitor and accountant the ultimate inheritance tax liability on an individual’s estate can be substantially diminished if not entirely eliminated:

There are many steps that can be taken in order to achieve legitimate tax savings. More often than not your accountant and/or solicitor will be uniquely placed to advise you not only on the proposed transaction, but also the knock on effect that it may have, which is why you should always take proper professional advice.

Follow Chris on Twitter @ChrisDavies_RB


Share this Blog