Personal Tax Planning Tips

There are many tax planning opportunities available to people and here are some that Opes Tax released in August on twitter (@Opes_Tax)

 

  • If part of your main home is used exclusively for business purposes, any gain arising on the sale of this part of the home will be taxable. Ensure no parts of your home are used exclusively for business - an office in the day, your laundry room in the evening!

  • If you own an unquoted trading company & are considering selling this, please consider your IHT planning before sale, as overnight you could go from owning an asset that qualifies for 100% IHT relief to owning cash which is broadly subject to IHT at 40%

  • If spouses acquire a buy to let property in joint names, any rents will be automatically split 50:50 regardless of any declaration of trust evidencing they own the property in different shares. The automatic 50:50 split of income from a jointly owned rental property can be displaced by an election. Form 17 should be completed and submitted to HMRC within 60 days of the declaration of trust evidencing the beneficial interest

  • Every UK resident and UK domiciled person is entitled to a tax free amount on death. This is known as the nil rate band and is currently set at £325,000. It is expected to remain at this level for the next few years

For more information on Personal and wealth tax planning please visit the Opes Tax website


For a discussion of how how we can help your personal and wealth tax planning, please contact Kari Mellon, of Opes tax on: 07795 026 882