Taxation Issues Which Need Consideration

Self Assessment

The Self Assessment Tax system can appear very complicated. We can ensure that your tax affairs are in order and indeed initiate repayment claims if appropriate. The deadlines for submitting self assessment tax returns from 6. 4. 08 for the tax year 2007-08 onwards are now 31 October for paper returns and 31 January for online tax returns.

Benefits and Allowances

Are you sure that you are claiming all allowances and benefits that you are entitled to?

Our fully trained staff can guide you through the minefield of Welfare Benefits providing assistance with the completion of application forms. We can review your overall affairs and ensure that all appropriate benefits are claimed.

Capital Gains Tax

Capital Gains Tax is one of the more complicated areas of tax. If you own assets, other than your principal private residence, you may have a capital gain on the disposal. If you are thinking of selling property, shares or any other assets, we would advise you to speak to one of our tax experts who will guide you through the taxation maze, before going ahead. Careful planning will help to ensure that you pay the minimum amount of tax.

Inheritance Tax (IHT)

If your estate, on your death, is in excess of the nil rate band your beneficiaries will pay IHT of 40% on that excess. As an example; if a person, who has never been married, dies leaving an estate worth £1million, at current IHT rates, tax of £275,200 would be payable to HM Revenue and Customs. This position may be different for married couples, widows or widowers.

There are many ways to limit the amount of IHT that would be payable and careful consideration needs to be given to ensure that any planning will not adversely affect your standard of living and to ensure it does not result in other taxes being payable.

Trusts

Trusts are a useful tool when dealing with tax planning as any assets gifted to a trust are removed from an individual’s estate, but some control over the assets can be maintained if desired.

Trusts are quite commonly used for gifting money or assets to minors who are not in a position to look after the money or assets themselves.

The complicated tax system for Trusts means careful planning needs to be in place before the opening of a trust and moving any assets into it. There are also administrative burdens that have to be carried out each year to comply with trust legislation.