Tax mitigation
Tax mitigation is a key component of our holistic financial planning service, incorporating inheritance tax, income tax and capital gains tax mitigation. Where necessary, we work alongside professional service firms such as accountants and solicitors on more complex cases.
Whilst it is not practical to go into depth within this website, we have provided a brief overview of the service we offer below, or you can contact us for a more detailed discussion about your individual circumstances.
Inheritance tax
Many people face the potential of a rising inheritance tax liability as their personal wealth increases at a faster rate than the nil rate band threshold.
Thankfully, there are still a number of approaches and allowances that can effectively mitigate a potential inheritance tax liability, including gifts, trusts and inheritance tax efficient investments.
Our Wealth Advisers have a thorough knowledge of inheritance tax mitigation techniques, and they are supported by a technical department that are able to provide further guidance on more complex situations.
Income tax
We often assume that paying income tax is an inevitable consequence of receiving income, but the rate you pay should not be taken for granted. For high earners especially, where income tax liabilities can be quite significant, there are a number of investment options that can help reduce income tax liabilities.
However, it is important to recognise that investment decisions should not be made primarily to reduce tax. For example, investments that help reduce a tax bill may, at the same time, sacrifice much needed flexibility or liquidity - they can also often involve higher investment risk. Our Wealth Advisers can help ensure you make the right decisions by balancing the desire to reduce the tax burden with the need to make investment decisions that are appropriate to your overall financial objectives.
Capital gains tax
The capital gains tax exemption limit is relatively low, which means that individuals can often find themselves facing the prospect of a significant tax liability, particularly if they have made gains on their investment portfolio or perhaps sold business assets.
As with income tax, it is possible to mitigate or defer a capital gains tax liability by utilising certain investment products. However, once again, care must be taken that a desire to save tax does not create an investment decision that could harm the overall financial wellbeing of an individual, which is why our Wealth Advisers will consider your financial situation as a whole. For example, tax liabilities can sometimes be reduced through simple re-organisation of assets, better timing of their disposal or, if appropriate, selling loss-making assets.
