Here at Abbey we can provide you with a professional hassle free service for your individual taxation needs. Our staff have expert knowledge in a verity of areas which will keep your mind at ease knowing that you are getting the best possible service. We can help you with a variety of services such as self assessment, personal tax, capital gains tax and inheritance tax along with much more. If you require our help for any of these services then give us as call on 01992 642 024 or email us at firstname.lastname@example.org today and speak to one of our expert advisers.
The responsibility to comply with the self assessment regime rests solely with the individual taxpayer. This means that self assessment tax return forms have to be 100% correct, each entry therein is to be supported by documentary evidence and the return must be submitted on time. Failure to do this will result in punitive penalties, surcharges and interest. We have the expertise and the computerised systems to prepare self assessment return forms and submit them electronically to HM Revenue & Customs.
Personal taxation has become increasingly complex over the last decade. The 45% rate band, the possible loss of the personal allowance and the complex pension tax relief provisions mean that it is vital to organise and plan an individual’s personal affairs on a timely basis. Carrying out personal tax planning in advance is the only way forward in dealing with personal tax. Not fully reviewing the position can result in avoidable large personal tax liabilities.
Capital Gains Tax
Capital gains tax applies to the disposal of an asset. An asset can be a property, land, stocks and shares, a painting and many other items. The tax is calculated on the difference between the sale proceeds and the cost. The net gain arising is taxed at 10% for individuals who are basic rate tax payers and 20% for individuals who are higher rate tax payers. For disposal of residential properties that do not qualify as a main residence the rates applied are 18% for basic rate tax payers and 28% for higher rate tax payers. There are a number of exemptions available which can dramatically alter the picture and reduce the tax liability. The application of this tax on properties, in particular second and let properties, can give rise to substantial capital gains tax liabilities which, with careful planning, can be materially reduced. Obtaining advice as early as possible will give us the opportunity to review the options available to mitigate the tax.
This tax applies to gifts made during an individual’s lifetime or on death. If a gift is made to another individual and the donor survives 7 years from the date of the gift no inheritance tax will be payable. Should an individual not survive for 7 years the value of the gift is added to the value of the individual’s estate on death and inheritance tax becomes payable. The first £325,000 will have no IHT payable the excess will be taxed at 40%. If the lifetime gift was an asset rather than cash the position becomes more complex because as well as being subject to the inheritance tax regime it also is treated as a disposal for capital gains tax. One of the major problems that arises in planning for inheritance tax mitigation is the family home. It is not possible to give away an asset and still have use of it. Many people give their family home away to their children but still live in it; this only works in very limited circumstances and in fact normally worsens the overall position. It is strongly advised that inheritance tax planning is carried out at the earliest opportunity as deathbed planning is the norm and is far too late to be able to seriously mitigate the inheritance tax position.