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Overview

There are two basic forms of taxation. Taxes can be levied directly or indirectly. Income tax is an example of direct taxation whereas VAT on goods and services is an indirect tax.

The liability to UK tax depends on your residence and domicile. You will be deemed a UK resident if you are in the UK for 183 days in any one tax year. You are deemed ordinary resident if the average is more than 91 days a year in the UK. Domicile is quite complex. Essentially you acquire a domicile at birth, normally from your father and that stays with you for life unless you take legal steps to change it.

Many people pay too much tax, either out of ignorance or poor planning and this is where sound financial planning can help. It is important to identify ways to save tax and ensure that your financial affairs are run in a tax efficient manner.

Some tax saving tips includes:

  • Moving assets into investments that are exempt from capital gains tax. (In simple terms capital gains tax is charged on the profit made from the disposal of an asset).
  • Timing the disposals of assets to spread across two tax years whenever possible.
  • Careful selection of assets to sell to minimise tax or generate tax-free income.
  • Non tax payers to invest in products that do not deduct tax, or where tax is reclaimable.
  • Receiving income from investments owned by the partner with the lowest tax band.
  • Higher rate taxpayers should ensure effective use is made of any tax breaks and gross-paying, tax-free investments.

For more information about Jeffreys Henry Financial’s range of Tax and Estate Planning services, please call 020 7371 5244 or email info@jeffreyshenryfinancial.co.uk

 

Contact Us

Jeffreys Henry Financial Services
Finsgate
5-7 Cranwood Street
London
EC1V 9EE

Tel: 020 7371 5244
Fax: 020 8371 3112
E: info@jeffreyshenryfinancial.co.uk

 

Jeffreys Henry Financial Services Limited is an appointed representative of Vintage Wealth Management Limited which is authorised and regulated by the Financial Conduct Authority. Number 593380.  Incorporated in England and Wales.  Company number 03824520.  Registered Office: 5-7 Cranwood Street, London, EC1V 9EE. Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk.

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Contact

Tel: 020 7371 5244
Fax: 020 8371 3112
E: info@jeffreyshenryfinancial.co.uk