Tax Planning

Since no-one likes paying taxes, why not let MAP help you to avoid the task as much as possible.

Our tax planning strategies, when done properly, are quite simple. There is no ingenious formula(e) for success; it is instead all about awareness of legislation, how it affects different people and how it can be legally avoided through planning.

The three taxes you could be liable to pay in your lifetime are:

Income Tax

Income Tax is charged on the majority of income a person can receive, the most obvious of which is salary and work-related earnings. It can also be payable on, amongst other things, profits if you run a business, rent if you lease out a property, some benefits received and interest/dividends from savings/investments. There are allowances that most people qualify for, which allows for some income to be earned which is not taxable.

Capital Gains Tax (CGT)

Capital Gains Tax (CGT) is charged on assets you sell, give away, exchange or otherwise dispose of, but only where a profit is made. It is not based on the amount of money received for the asset; only the gain made is taxed. So quite simply, the gain is the sale proceeds less the original cost of the assets in question, i.e. the capital gain. Again, there are some allowances that people can qualify for.

Inheritance Tax (IHT)

Inheritance Tax (IHT) is charged when assets in excess of the nil-rate band and residence nil-rate band are transferred from a person’s estate upon their death but are not passed to an exempt beneficiary such as a spouse, civil partner or charity. The standard IHT rate is 40% but transfers within seven years of death are effectively treated as transfers on death. Some transfers are wholly or partly exempt from IHT through gifting exemptions and the majority of transfers made between individuals during their lifetime are ‘Potentially Exempt Transfers’ (PETs).

MAP can provide effective planning to minimise your tax liability.

MAP has taxation specialists who know all about the intricacies of taxation and how it affects people’s affairs. This means they are in an excellent position to provide tax planning advice for clients; be they individuals, families, partnerships or firms.

At MAP, we will work with you to create an effective plan based on your current and likely future financial position, minimising your tax liability as much as possible along the way. As a starting point, you can make use of free tools such as HMRC’s annual allowance calculator to get an idea for what tax to expect.

We also have a sister firm – Accounts Advice & Planning Ltd (AAP) – who work exclusively in accountancy and taxation. They can assist further with tax planning as well as undertake day-to-day accountancy work and support, plus complete HMRC submissions on your behalf.

For more information, click on the most suitable link:

Business Relief Schemes

Discounted Gift Trusts

Flexible Reversionary Trusts

The Financial Conduct Authority does not regulate tax planning.