Your financial goals
Every client is unique and will have particular financial needs and goals. You might simply want to maximise your wealth so that you can enjoy more of your hard-earned money now and in retirement. You might need to pay for your children’s education, or to help support ageing parents. Or perhaps all of the above apply. As your accountants, we can suggest practical ways to help make these objectives become reality.
Using exemptions and allowances
Each individual within your family is taxed separately, and is entitled to his or her own allowances and exemptions. The basic personal allowance for 2015/16 for those born after 5 April 1938 is £10,600, while the capital gains tax annual allowance for 2015/16 is £11,100.
A series of rate bands and allowances are assigned first to your earned income (which includes pensions), then to your savings income, and finally to any UK dividend income.
Planning within the family
By using the available personal allowances and gains exemptions, a couple and their two children could have income and gains of at least £86,800 tax-free, and income up to £169,540 before paying any higher rate tax. Through careful tax planning, we could help you and your family to benefit from more of your wealth.
Your tax planning objectives should include taking advantage of tax-free opportunities, keeping marginal tax rates as low as possible, and maintaining a spread between income and capital.