Helping Your Children and Grandchildren

There are a number of tax efficient methods by which you can help your children and grandchildren.  Funding these opportunities may be a lifetime gift reducing your estate for inheritance tax purposes.  They may also generate tax benefits for your children

Inheritance Tax, tax efficient investments, pensions and helping the grandchildren

Following on from this month’s Budget, in today’s Insight, we take a look at a number of areas covered by the Budget that may be important as part of your financial planning and strategy.

Inheritance Tax

On Wednesday 4 March 2021, Chancellor Rishi Sunak presented his second Budget, which he described as a “three-part plan to protect the jobs and livelihoods of the British people” comprising:

• support for individuals and businesses through the Coronavirus pandemic
• fixing the public

Tax Efficient Investments

There are a number of tax efficient investment schemes.

Enterprise Investment Scheme (EIS)

EIS gives you tax relief for investing in new shares in qualifying unquoted trading companies.  The tax incentives for investing in companies qualifying for EIS relief are

Pensions and ISAs

Pensions

The lifetime allowance is £1,073,100 for 2020/21 and is likely to increase in line with inflation in subsequent tax years.  Certain taxpayers who have already funded their pension plans on the basis of the previous lifetime limits had the opportunity to apply for fixed

Inheritance Tax Planning

The key to successful estate planning is to first make sure that your wishes for your estate are properly carried out and second that opportunities to reduce the inheritance tax are fully taken.

Inheritance tax planning is therefore normally considered on a long term

Capital Gains Tax Planning

Capital gains tax planning should always form part of your regular tax planning activities. So, in this second post in our Year End Tax Planning series, we take a look at some of the key considerations you should have in mind as we approach the end of the financial

Optimising your marginal income tax rate

As the end of the tax year approaches, we hesitate to think about what we said this time last year.  Stability was expected from a government with a sizeable majority promising to deliver on its manifesto.  In fact, about the only significant promise

And if so, how to take away some of the pain

Nobody wants to fall out with HMRC but unfortunately there sometimes comes a time when, despite everyone’s best efforts (or even sometimes because of them), you’re faced with the prospect of litigation. For some, this may feel like a chance at