TAXATION
Most of us risk being taxed on our income, our capital gains and the value of our estate when we die. It is worth getting a clear grasp of how these taxes work and then discussing with Gold Independent Financial Advisers Ltd. the most tax efficient financial planning for you.
INCOME TAX
The single person's income tax allowance for the year to 5th April 2009 is £5,435. If your total income is less than this during the tax year then there's no tax to pay.
Don't forget pension payments. You may be able to pay further contributions to your pension, which can soak up some unused tax relief.
CAPITAL GAINS TAX (CGT)
In the tax year to 5th April 2009 the CGT allowance is £9,600
This means that you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount.
If you have used your CGT allowance, don't forget your ISA allowance. A "stocks and shares ISA" can shelter capital gains and dividends on investments (for example shares) worth up to £7,200 per year.
INHERITANCE TAX (IHT)
Inheritance tax is hanging over more and more of us each year. This is largely due to the rise in residential property values. The current IHT allowance is £312,000 Depending on the value of your house and other assets this may not be that big an allowance. If you die leaving an estate worth more than £312,000 and you have no spouse your estate will come in for IHT at 40% on the balance.
The March 2008 Budget made significant changes to Inheritance Tax. If you would like a full consultation on how this could be your advantage, please contact us. Levels and amounts of relief are subject to change.
Registered address: Gold IFA Ltd, 21 Carlton Mews, Carlton Centre, Lincoln, LN2 4FJ, Redistered in England & Wales. No. 4666765
Gold IFA Ltd is an appointed representative of Sage Financial Services Ltd, which is authorised and regulated by the Financial Services Authority. Sage Financial Services Ltd is entered on the FSA register (www.fsa.gov.uk/register) under reference 150452.
The FSA do not regulate will writing and personal lending services and some forms of mortgages and inheritance tax, planning services. The information and content of this web site is intended for UK consumers only and is subject to the UK regulatory regime. When we advise on general insurance products we usually select from a panel of providers.