CGT (Capital Gains Tax)
CGT is a tax on capital “gains”. If when you sell or give away an asset it has increased in value, you may be taxable on the gain (profit). This doesn’t apply when you sell personal belongings worth £6,000 or less or, in most cases, your main home.
If you have sold, or you are thinking of selling an asset which you think may be liable to CGT, there are a number of questions that you first must ask yourself. Everyone needs to remember that all gains have to be disclosed to their accountant in case tax is applicable. It is better to talk about anything you have sold when you provide your paperwork and then our experienced staff at Polaris Accountants can advise you on whether or not the amount is relevant.
The most popular capital gains tax service we offer is calculating your current exposure to this tax and then discussing your options for restructuring your affairs to reduce this tax. Seek advice from an experienced member of our staff in structuring your financial affairs and allow us to ensure that you will not be paying any more capital gains tax than you absolutely have to.
IHT (Inheritance Tax)
Along with capital gains tax, IHT is often referred to as a voluntary tax. Inheritance Tax is a tax charged on certain life-time gifts, wealth on death and on certain transfers into and out of trusts. However, with careful planning this tax may be avoided or minimised by judicious use of gifts, will planning and trusts. Talk to us about your wishes and we can advise you on the potential tax implications.
We advise on all aspects of UK taxation including overseas and our specialist team have both the knowledge and experience to guide you through the tax implications of such matters, whether they are compliance in nature, or deliberate tax planning.
We understand that the various complicated tax systems and the task of paying the right amount of tax in all countries, at the correct time and all through the correct mechanism is a daunting one, so in speaking to one of our experienced staff members we strive to put your mind at ease.
National Insurance Contributions
National insurance contributions (NIC) are essentially a tax on earned income (effectively another form of income tax). The NIC regime divides income into different classes: Class 1 contributions are payable on earnings from employment, while the profits of the self-employed are liable to Class 2 and 4 contributions.
National insurance is often overlooked yet it is the largest source of government revenue after income tax. However with careful planning, it is sometimes possible to minimise this tax cost, although consideration has to be given to the potential loss of state pension and benefits if insufficient NI contributions are paid.
Our experienced staff can advise in relation to class 1, class 2, class 3 and class 4 NI contributions. As well as seeking to reduce this cost, our staff will prepare all of the necessary paperwork and communicate with the Inland Revenue and Contributions Agency on your behalf, giving you the peace of mind that your tax affairs are dealt with in a professional manner
Benefits in Kind
Benefits in kind are received by a great number of employees and directors, particularly those with company cars. The income tax implications of these benefits can be complicated and so taxpayers need to fully understand the rules so that they can properly prepare their self assessment tax returns.
Specific areas which we are typically asked to advise on include:
*Understanding the mechanics of the new company car tax rules
*Minimising the tax on company cars
*Receiving non taxable benefits in kind
*PAYE coding implications of these benefits, including coding out underpayments
We are more than happy to discuss the circumstances within your company or you as an individual so we can plan the best tax position for you or your company. Understanding this complicated tax system and paying the correct amount of tax, at the correct time, through the correct mechanism, is what most clients seek so speaking to one of our experienced staff members may put your mind at ease; we may even be able to suggest ways to restructure your remuneration package and save tax.