What we do
Capital Gains tax planning
Protecting and maximising your wealth – that is our commitment to you from day one.
We go much further than simply understanding your immediate financial needs. We thoroughly examine your future plans and aspirations, so we can develop tax-efficient strategies to support you in the long-term.
Legislation is ever-changing, meaning we regularly review your personal tax planning, making any changes you need to guarantee you meet all your goals.
You can find out more about our specialist areas of private client taxation by reading the links on the left.
While you may have to pay Capital Gains Tax (CGT) for a variety of reasons, most often it applies when you profit or gain from the disposal of an asset.
Whether you choose to sell, give away, receive compensation or transfer the asset to someone else, you will only have to pay CGT on any gain you make, and not for the amount of money you receive for the asset.
Currently, the rate of CGT for a basic rate Taxpayer is 10%. However, if your total income and gains exceed this basic rate within a tax year, it automatically increases to 20%.It is though worth remembering that there are a few exceptions, such as the sale of UK residential property, where the rate increases to 18% and 28%, depending on your circumstances
If, on the other hand, you are disposing of a business or shares in a trading company, you can apply Entrepreneurs Relief (ER), so that your first £10million in gains are taxed at 10%.
Using a new CGT relief called Investor’s Relief (IR), you can make a further £10 million of gains in addition to the ER limit. Again, this will be taxed at the lower rate of 10%, as long as you meet certain criteria. Broadly speaking, IR applies to external investors in unlisted trading companies. As an investor, you must acquire newly issued ordinary shares for new consideration on, or after, 17 March 2016. Your investment must then be held for at least 3 years from 6 April 2016 onwards.
Key to any CGT planning is how your investments are structured. For example, if you were to invest in an Enterprise Investment Scheme, you would not have to pay CGT on a disposal that meets the criteria. In addition, if you reinvest your gains in EIS shares, you can then defer payment of Capital Gains Tax until a later date.
CGT planning for non-UK domiciles and non-residents can be complex, but can bring tax benefits. If you are non-UK domiciled or non-UK resident, we can advise you on whether there might be a more beneficial investment structure for you. By showing you how to carefully plan your investments and acquisitions to match your exact needs, we can help you minimise the amount of Capital Gains you pay.
Inheritance tax planning
Many people accept income tax as just “one of those things” to be dealt with. Yet while income tax may be compulsory, it need not be a burden.
On the contrary, understanding how to meet your obligations while reducing your personal tax payments can make a big difference to your personal wealth.
Working with you to review your current situation, we will help to minimise the amount you pay, while maximizing the amount you retain.
From income tax planning and completing your tax returns, to dealing with the Inland Revenue on your behalf, we offer all the advice you need. We can also help you with inheritance tax and the planning of your estate.
Estate planning and trusts
Inheritance Tax (IHT) has become an increasingly complicated area, with legislative changes easily catching out the untrained eye. To minimize your exposure to IHT, careful planning is more crucial than ever. This means making decisions about both your finances and your family. But with our advice, you need not worry.
Upon death, IHT is charged at the full rate of 40% on personal wealth, along with all – or a proportion of – any lifetime gifts made in the preceding seven years. Gifts made more than seven years before death are exempt from IHT, yet inheritance ta can also apply to gifts known as ‘chargeable transfers’ made during your lifetime.
The sooner you plan for IHT, the better it will be for you and your family. Under the current rules, inheritance tax is payable if your wealth exceeds £325,000 (subject to a transferable nil rate band for spouses and civil partners). If you own your own home, have savings, a life insurance policy or business assets, your estate could well be liable. Many people underestimate their wealth, so it is important you take a fresh look at your personal finances. Working with you, we will put in place a strategy that lets you mitigate your IHT liability, while at the same time taking care of your family.
Residence & domicile
Protecting your wealth and estate calls for a careful, focused plan. Our expert tax advisors will put together the most efficient strategies tailored to your unique needs. Trusts can be a very effective part of your plan when it comes to inheritance tax. They are especially useful for non-UK domiciled individuals, not to mention an effective way of protecting your assets and family wealth, long into the future.
The two most common types of Trust are known as Interest in Possession (IIP) and Discretionary Trusts (DT). IIP gives the beneficiary the right to income over the trust assets, whereas a DT puts any distributions to beneficiaries (usually a wide variety of beneficiaries) at the absolute discretion of the trustees.
Whether for tax planning or wealth protection, we can help you make Trusts part of your overall financial strategy.
Knowing exactly which taxes you are liable for is complicated enough for UK residents. For the non-UK domiciled, it gets even more challenging. Yet with the right advice, there are advantages to be gained from the current legislation. For instance, if you live in Britain, but are non-UK domiciled, you can keep your income and gains outside of the UK, but you will most likely have to pay £30,000 for the privilege.
These same remittance basis charges will seek to tax you on your overseas income and gains when they are brought to the UK. To limit how much you will have to pay, we can look at helping you structure your assets in a way that maximises the rules in your favour.
Whether you are looking to leave or enter the UK, have already left or you visit only occasionally, you will no doubt encounter a maze of recent case law and the Statutory Residence Test.
In fact, UK residency tax can be very complex. This is why we regularly advise on both residency and domicile issues, guiding you through what can be a daunting process.