Maximising Asset Value
Proactive management of assets can avoid loss of value to tax. At Tayabali & White, we focus on tax efficient asset and wealth planning, advice and implementation.
Personal assets audit and review
Map your assets and their values – both current and future
Inheritance Tax, Wills & Trusts Planning
Estimate your Inheritance Tax liability and develop strategies to reduce it
Wider Considerations
Giving thought to personal objectives, family issues and philanthropy
Capital Gains Tax Planning
With pre-transaction planning this tax can be reduced or even eliminated
Personal assets audit and review
The most effective asset planning is done holistically and, to help us give you the best advice, our first step is to provide you with a full picture of your assets, liabilities and intentions. Until they engage us this is something that many of our clients have never done.
Inheritance Tax, Wills & Trusts Planning
The effective asset threshold for an individual is typically £325,000 (£650,000 for married couples and civil partners) that can be passed on tax free at death to future generations, after which all value is generally taxed at 40%, making Inheritance Tax a major consideration, particularly for high net worth individuals.
If considered early enough, there are many strategies that can be applied to reduce or even eliminate Inheritance Tax. The sooner you start to plan, the more strategies there are available to you.
Trusts can be used to protect and safeguard assets, as well as mitigate Inheritance Tax. However, setting trusts up can be complicated – a trust deed needs to contain details of the settlor, the beneficiaries, the trustees, the assets, the powers of the trustees and any other wishes that the settlor may have, which requires great care and needs to be done correcly, or it can leave the trust open to uncertainty and it may not achieve what you want it to. We can help you with these considerations and liaise with your legal adviser.
Good planning is therefore critical. Also there are tax aspects to be considered, including lifetime Inheritance Tax, potential capital gains on whatever assets are put into the trust, annual trust tax on income and gains from trust assets, periodic 10 year tax charges on assets in trust, distribution of income or transfers of assets to beneficiaries and finally the need for annual trust accounts depending on the complexity of your trust’s affairs.
Wider Considerations
Many factors can have implications on what happens to your wealth, for example: the situation of your children or grandchildren, their ages, school fees or special needs; elderly parents with care needs or inheritances that need to be considered; or charities and philanthropic causes that are important to you.
Sometimes choices are not always about asset values and tax liabilities, as there are many personal considerations that need to be borne in mind, and that’s what we believe that really good future planning must encompass.
Capital Gains Tax Planning
If you sell or give away certain assets at a profit of more than £12,300 pounds in any tax year, you may be liable to pay Capital Gains Tax. The top rate is 28%, though the reduced Business Asset Disposal Relief rate of 10% may be available in certain circumstances on the disposal of some business assets.
Capital Gains Tax is frequently misunderstood or overlooked, which can lead to significant and unexpected liabilities. We find there are often myths that need to be dispelled.
However, there are many reliefs and legitimate tax planning opportunities to help reduce or eliminate Capital Gains Tax. The key lies in pre-transaction planning – even as far back as the purchase of the asset. For this reason we like to talk regularly to our clients so that Capital Gains Tax can be managed as effectively as possible and to avoid unwanted surprises.
