12 Top Tax Tips to Easter – #4 Build up a tax free fund

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The run-up to Easter is the perfect time to consider tax planning opportunities and to put in place strategies to minimise tax before the new tax year starts on 6th April 2016. That’s why we have launched a series of 12 tax tips to help you mitigate your tax bill.

Good planning and careful timing are critical if you want to maximise tax reliefs or minimise the tax bill on a transaction or investment, and to avoid falling foul of the system of penalties and interest levied by HM Revenue & Customs (HMRC).

Our tax tip #4 explains how to build up a tax free fund.

#4 Build up a tax free fund

  • Make full use of the ISA allowance of £15,240 for both 2015/16 & 2016/17
  • Transfer private company shares to utilise exemptions and rate bands of your spouse and other family members. But seek advice from HMT of any tax consequences of doing so.
  • Realise capital gains annually from your share portfolio within the annual CGT exemption.
  • Investing in VCT, EIS or SEIS reduces your income tax bill by up to 50% of the amount invested.

Tax is a complex matter, so we recommend that professional advice is sought when considering any of the above. Our highly qualified and experienced tax team would be happy to discuss your tax affairs with you.

If you have any questions regarding your tax affairs, please do not hesitate to contact our tax team on 01491 579740.