Capital Gains Tax (CGT) and Inheritance Tax (IHT) can significantly affect your wealth, both during your lifetime and after you pass. At Tax Nest Accountants, we specialise in providing expert advice and tailored strategies to help you reduce your exposure to these taxes. Whether you’re looking to minimise the impact of capital gains tax on your investments or protect your estate from hefty inheritance tax charges, our team is here to guide you through every step of the process.
Maximise Your Wealth and Minimise Your Tax Liabilities with Professional Tax Planning
What is Capital Gains Tax?
Capital Gains Tax (CGT) is the tax you pay on the profit from the sale of certain assets, such as property, stocks, bonds, and business assets. It’s important to plan ahead, as CGT can take a significant portion of your gains. However, with the right strategy, you can reduce or even eliminate CGT liability.
Key aspects of Capital Gains Tax:
- Tax-Free Allowances: You may be entitled to a CGT exemption on a certain portion of your gains, such as the annual tax-free allowance.
- Tax Rates: The rate of CGT you pay depends on the size of your gain and your income tax band.
- CGT on Property: If you’re selling property, there are specific rules and exemptions, such as Principal Private Residence Relief.
How We Can Help with Capital Gains Tax
At Tax Nest Accountants, we offer bespoke advice on managing your capital gains tax liabilities effectively. Our services include:
Investment Structuring: Advising on tax-efficient investment vehicles like ISAs, pensions, and other savings plans to reduce CGT exposure.
Asset Sale Planning: Guidance on the most tax-efficient way to sell assets and avoid unnecessary CGT.
Tax Reliefs & Allowances: Maximising the use of available exemptions, such as Private Residence Relief and Entrepreneurs’ Relief.
Tax Deferral Strategies: Exploring options like gift relief or reinvestment strategies to delay CGT payments.
What is Inheritance Tax?
Inheritance Tax (IHT) is a tax on the estate of someone who has passed away, including property, money, and possessions. If the value of your estate exceeds the Inheritance Tax threshold, your beneficiaries could face significant tax liabilities.
Key aspects of Inheritance Tax:
- Nil-Rate Band: Each individual has an allowance (known as the nil-rate band) before IHT is charged.
- Spouse Exemption: Transfers to a spouse or civil partner are typically exempt from IHT.
- Residence Nil-Rate Band: Additional exemptions are available if you pass your home to direct descendants.
How We Can Help with Inheritance Tax
With the right planning, inheritance tax can be significantly reduced or even eliminated. Our experts help you structure your estate to minimise IHT exposure and ensure your loved ones inherit your wealth efficiently.
Our inheritance tax services include:
- Estate Planning: We assess your estate and help you structure it to minimise IHT, using trusts, gifts, and other tools.
- Gifting Strategies: Expert advice on gifting during your lifetime to reduce the size of your estate and make use of IHT exemptions.
- Trusts & Legacies: Setting up trusts to protect your estate and reduce IHT, ensuring that wealth passes to your heirs as intended.
- Life Assurance: Advice on using life insurance policies to cover potential IHT liabilities, ensuring your estate can cover the tax bill without needing to sell assets.
