Tax planning 2

Tax Planning for Individuals

No one wants to pay more tax than they should. At Anderson Strathern, we specialise in helping you make sure that your tax affairs are planned efficiently. Effective tax planning could defer, reduce, or even eliminate your tax exposure.
We’re here to help you minimise your tax and maximise your wealth.

No one wants to pay more tax than they should. At Anderson Strathern, we specialise in helping you make sure that your tax affairs are planned efficiently. Effective tax planning could defer, reduce, or even eliminate your tax exposure.

Our tax planning experts are here to help you minimise your tax and maximise your wealth. We cover all areas of tax and can help you plan your current and future tax strategy, ensuring your best interests, and those of your loved ones, are firmly protected.

No matter what your main goal might be – whether it’s to preserve wealth so it can be passed on to future generations, to increase your current wealth, generate income or perhaps a combination of all of these – we can provide carefully tailored advice that allows you to achieve your desired outcome.

We have one of the largest dedicated tax teams in Scotland with a vast amount of combined experience and expertise which we can use to support you, no matter what your personal circumstances may be.

Speak to our tax planning solicitors today

To discuss your tax planning needs with a member of our expert team, please get in touch today.

Contact us on 0131 270 7700, visit our offices in Edinburgh, Glasgow, East Lothian or Shetland, or fill in our enquiry form at the bottom of the page to request a call back.

Our tax planning expertise

We have a wide range of expertise on various tax planning matters for individuals. Our expertise includes, but is not limited to:

Inheritance tax (IHT) planning

If your estate is worth more than the current IHT nil-rate band and residential IHT nil-rate bands, or if you have made substantial gifts in the seven years preceding your death, your loved ones may be faced with substantial IHT liabilities.

You can pass on assets up to the value of your nil rate band free of IHT after you die.  The nil rate band is currently £325,000 but it may be reduced or eliminated if you make gifts during your lifetime that aren’t covered by IHT allowances and you die within seven years.

Beyond this, your money and estate are potentially subject to tax at a rate of 40%.

It is important to be aware that there is also a residence nil rate band which is worth £175,000. With this, if you leave a property to your children or grandchildren (your direct decedents), a further £175,000 can be passed on free of IHT. The rules governing the relief are complex and advice may be required to ensure the relief can be claimed.

There is no IHT to pay if the estate passes to the surviving spouse or civil partner. On the death of the second spouse two nil rate bands and residence nil rate bands may be available.  Gifts to charities  or a community sports club, for example, will be free of IHT.

Even in situations where IHT may be due on your estate, it can be possible to minimise your exposure through careful lifetime tax planning. This is something our tax planning experts can support you with.

With our support, it is possible to significantly reduce or, in some cases, eliminate your estate’s future liability for IHT. This can be achieved through various methods, such as:

  • Making or amending a Will
  • Maximising the availability of the nil rate band and residence nil rate band
  • Lifetime gifts including potentially exempt transfers
  • Legacy donations
  • Creating and managing trusts
  • Ensuring that business interests qualify for relief whether agricultural property relief or business property relief

We can help you navigate how best to plan for your personal circumstances through both lifetime gifting and in your will.

Capital gains tax (CGT)

CGT is a tax which is payable by UK resident taxpayers on the disposal of assets that have increased in value. In general, you are subject to CGT when you make a gain on the disposal of assets such as:

  • Personal possessions worth £6,000 or more (apart from your car)
  • Property that’s not your main home
  • Your main home IF you have let it out or used it for business
  • Investments that are not in an ISA or PEP
  • Business assets

CGT is due  on the gain and not the proceeds received. Gifts may also be charged to CGT with the taxpayer being charged to tax as if they had sold the asset at market value.

It is also important to note that non-UK residents are also caught by the UK CGT regime on the disposal of residential and commercial property situated in the UK.

You will only be required to pay CGT on your overall gains above your tax-free allowance, which is called the Annual Exempt Amount.

Our tax experts can work alongside you to put effective plans in place that will help to minimise the amount of CGT you are liable to pay. This may involve transferring assets to spouses before sale, spreading gains over more than one tax year and ensuring that CGT reliefs such as Business Asset Disposal Relief on qualifying business interests are not lost.

Income tax and remuneration planning

Higher and additional higher rate taxpayers should consider reviewing their own personal tax position with that of their spouse/civil partner and/or other family members, so that they can find ways of minimising certain tax liabilities

Family businesses can also provide a number of opportunities to control the income tax exposure of both owners and employees.

We’ll work with you to carefully review your income sources and highlight planning opportunities that will help to reduce your tax liabilities.

Tax-efficient investments

Investment in certain qualifying assets and investments can help defer, minimise and even eliminate income tax, CGT and/or IHT liabilities. However, sourcing and selecting the right investments can be complicated, especially as your personal situation will have an impact on what the right approach may be.

ISAs and pensions are two of the most common and tax-efficient vehicles that can be utilised, but there are various other options which could be explored in certain scenarios.

For example, it may be possible  to reduce your tax liabilities by acquiring shares in a company qualifying  under the Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEISS) – but these are higher risk strategies that may not be suitable for everybody. It is always important to seek appropriate financial advice when considering the purchase, ownership or disposal of investments.

We will help guide you through the available tax reliefs in light of your circumstances and tax planning objectives, assessing the implications of the various solutions that may be available to you.

Leaving and returning to the UK

Leaving and returning to the UK may have an effect on your tax obligations, which means careful planning is essential to make sure that you’re aware of the potential implications.

We can advise on the application of the UK statutory residence test and domicile rules and potential planning options arising from you leaving or returning to the UK.

Our tax advice also extends to advising clients on the tax implications of investing in property and other UK assets.

Why choose our tax planning experts?

We have one  of the largest dedicated tax teams working within the legal sector in Scotland and have substantial experience with various tax planning matters, using ourr wealth of combined expertise to support clients from all walks of life.

Our team comprises eight Chartered Tax Advisers, Law Society of Scotland accredited specialists in tax law, members of the Law Society of Scotland’s tax committee and members of the Society of Trust and Estate Practitioners (STEP).

As well as advising on tax for individuals such as landowners and entrepreneurs , we also have substantial expertise in advising businesses on tax planning matters and compliance. For more information regarding tax planning for businesses, please click here.

Speak to our tax planning solicitors today

To discuss your tax planning needs with a member of our expert team, please get in touch today.

Contact us on 0131 270 7700, visit our offices in Edinburgh, Glasgow, East Lothian or Shetland, or fill in our enquiry form at the bottom of the page to request a call back.

We're here to help

If you’d like to discuss our tax planning services further, please contact us.

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