Five top tax tips:

Take a look at these five top tax tips to support effective tax planning:

1 - Maximise pension contributions by 5 April 2024 - contributing to your pension can save you income tax or if you are a business corporation tax. Additionally, for high earners (over £100k), it helps preserve your personal allowance. For those earning over £50,000, it can preserve child benefits. Pensions can also be inherited tax-free if you have never drawn this pot down. It also escapes inheritance tax in your estate, and also allows your pot to grow  income tax and capital gains tax free.

2 - Seek advice before buying or selling property - it's crucial to understand the best way to hold property to optimise your requirements and tax position. Consider a declaration of trust to alter ownership split before selling, potentially saving on capital gains tax. Remember, capital gains tax for residential property must be paid within 60 days of completion, along with filing a separate CGT return. 

3 - Optimise investment asset holding - the way you hold investment assets, especially between spouses, can impact the tax rate. Proper advice can help in saving income tax, capital gains tax, and potentially inheritance tax. 

4 – Utilise annual tax reliefs - Make sure you are taking advantage of all available tax reliefs each year, like inheritance tax gift reliefs, personal allowances for income tax, annual exemptions for capital gains tax, ISA allowances, and dividend/savings allowances.

Contact Lerica who can help to tailor solutions to your specific situation. 

5 – Leverage the nil rate band for Inheritance Tax - you can use your £325,000 nil rate band every seven years to save on inheritance tax. While outright gifts to your beneficiaries may be daunting, using a trust can offer control and protection for your beneficiaries, offering benefits beyond just tax savings.