Tax Planning
Advisor Link are committed to helping you make informed and strategic decisions when it comes to planning for Tax Liabilities. The UK tax system is particularly complex and navigating it to make sure your finances are tax-efficient can be a difficult task.
Our panel of highly experienced partnering advisors, can help to make sure you gain the full benefits of your hard-earned assets, with tax and inheritance tax planning that will leave you and your family with more to enjoy throughout your lifetime.
The 60% Tax Trap
Individuals earning between £100,00 and £125,140 with a restricted personal allowance are subject to the 60% tax trap. For every £100 of income between these figures, you will only receive £40 in the bank since £40 is paid in income tax and £20 is lost due to the fall in the personal allowance – effectively making your tax rate shoot up to a staggering 60% or more.
Dividend and Savings Income
Through the Personal Savings Allowance, basic rate taxpayers can earn £1,000 of interest on savings before paying tax.
Those paying tax at the higher rate can earn a £500 allowance. There is no allowance if you are an additional rate taxpayer. The Dividend Allowance is £1,000, half of what it was in the 2022/2023 tax year
Capital Gains Tax
Capital Gains Tax (CGT) is a tax on the profit when you sell something that has increased in value. CGT applies only to the gain you make, not the amount you receive for the asset. Gains from most personal possessions can be liable to CGT.
The annual exempt amount for individuals is £6,000 and reducing to £3,000 for the next tax year 2024/25. Effective and repeated use of your CGT annual exempt amount enables the transfer of assets into ISAs or pensions to provide a shelter from any future tax liability on income or gains.
Get to Know Us
At Advisor Link, we are proud to work with industry-leading professionals who share our commitment to delivering high-quality, client-focused services. Effective Tax Planning is about maximising the fruits of your hard work, and we are here to help you achieve that with the utmost care and professionalism.
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