2. Tax Planning
We appreciate that life is not always plain sailing. At some point in your life you may have to make some stressful and major decisions.Â
We are here to help with these decisions and steer you in the right direction.Â
Whether you’re deciding on whether to acquire a new business or a company purchase, acquire or sell a property, make a move abroad or stay in the UK, start a well-deserved retirement or continue working, or even decide on how best to pay school fees, we can talk you through the options. We can even support a marriage, separation or a divorce, or even support in planning for your eventual passing and how best to transfer your assets to your loved ones.
It is quite easy to make the wrong decision and as a result, you or your loved ones could suffer unnecessary harsh tax consequences.
At Telic, we can help you make the right decision and minimise your tax exposure with our tax planning services. Our knowledge of UK tax legislation ensures that you will be aware of the tax implications on the choices available to you before you get to the point where you must decide. At Telic we encourage foresight and forward thinking, and tax planning falls into those categories.
We would much rather you have to start a sentence with the words “I had the foresight to…” rather than “In hindsight, I wish I had…”
FAQs
How can I reduce my CGT liability?
Most sales or transfers of gifts between spouses or civil partners do not give rise to a potential CGT liability. By transferring assets in this way you can take advantage of your combined CGT exemptions and especially of lower tax rates if the transferee is non-tax paying. It might also be sensible to split gains over two tax years, to make use of both years’ allowances.
Since the rate of CGT you pay is dependent on your income tax band, reducing your income tax rate can also have a knock-on benefit on your CGT.Â
How can I avoid losing my UK Personal Allowance if my income is expected to be above ÂŁ100,000
A common method of reclaiming the personal allowance is to make a pension contribution to take your income to below the threshold at which you start to lose your personal allowance (being ÂŁ100,000 – detailed here – find in FAQs)
Alternatively making a gift aid donation will also facilitate this process. This can be achieved even when the donation is made in the subsequent tax year.
However, generally planning is key before the tax year of relevance is over.
If you live with a spouse or civil partner and have jointly held property, you can change the split of property income to your actual share of ownership. This is useful when one individual has a lower marginal tax rate, and therefore the overall tax paid by both parties is lower.
If, for example, there is an 80:20 ownership, you’ll need to provide evidence that your beneficial interests in the property are unequal (via a declaration or deed), and complete a Form 17 accordingly.
In summary, a Form 17 should be completed if you own a property in unequal shares and you wish to inform HMRC that you wish to be taxed on that basis.
What is the effect of marriage and divorce on your existing will?
When you marry, any existing will is automatically revoked (cancelled) and becomes no longer valid. If you do not make a new one, then when you die the law of intestacy decides how your assets are divided.Â
If your marriage is ended by a court order (like divorce or annulment) your will is not void or invalid. So it is best to make a new will immediately after your divorce, especially if your spouse or civil partner was a beneficiary or a trustee.
Each year you personally can contribute up to 100% of your relevant UK earnings (a minimum of ÂŁ3,600) into a pension or the annual allowance (whichever is lower) and receive tax relief.
If you have any questions or need further advice in this area, please get in touch and we will be happy to discuss furtherÂ
Blogs
On 2 October, our dedicated team stood shoulder to shoulder with some of the Accounting industry’s finest at the Accounting Excellence Awards at the Roundhouse, London....
On Sunday 24th September 2023, we swapped our calculators and spreadsheets for running shoes and race bibs, as Telic proudly sponsored the Moor Park 10k fun...
A delightful token of appreciation from a client. This pair of chocolate gifts and heartfelt thank-you are a testament to the strong relationships we’re proud to...
Last week, the Telic team decided to swap the office for the outdoors and headed to the golf driving range for a refreshing team summer social....
We are delighted to sponsor this year’s Moor Park 10k and Fun Runs on Sunday 24th September. The company is a long-term supporter of Mount Vernon Cancer...
✨We are thrilled to share some exciting news! ✨ The Telic team is honoured to be announced as finalists for not one, but three prestigious industry...
We are pleased to announce with immense pride the well-deserved promotions of Akshi Maroo and Muki Khan, who have been promoted to the roles of Senior...
