Tax Tips



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Key Benefits

A chartered tax adviser 
giving you
personal advice

General Tax Tips

Please contact me for personal advice, but here are some useful hints

1) Use your personal allowances
Most people use their income tax allowance, but do you make full use of your capital gains tax annual exemption?

2) Use your basic rate tax band and your spouse's basic rate tax band
You may be paying tax at the higher rate of 40%. Could you transfer some of your income to a spouse who may only be paying tax at 20%?

3) Use the governments tax incentives
ISA - Individual Saving Account
EIS - Enterprise Investment Scheme (see 7 below)
Gift Aid

4) Consider trading through a limited company and benefit from the 20% small companies corporation tax rate Small Businesses.

5) Review your pension provision.

6) Efile your tax returns. Save paper and time

7) Enterprise Investment Scheme (EIS)

a) The Income Tax Benefits
If you are a higher rate tax payer, then you can gain tax relief of 30% of the amount invested (could be 50% following Budget 2012).

b) The Capital Gains Tax Benefits
Any gains made on the sale of shares bought through an EIS are free of capital gains tax.
Furthermore, a capital gains tax bill arising out of a gain already made can be deferred by making an investment in an EIS.

c) How to Qualify
In order to qualify for the above reliefs, any investment must be in an Inland Revenue approved EIS.



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Last modified: December 23, 2011