Tax planning is an essential aspect of life for both medium and high-earning individuals.
Your financial affairs are inevitably influenced by your life events and goals. That’s why it is crucial to have a trusted tax adviser by your side who can make the right tax arrangements for you and your family.
The Simplified Global Accounting Solutions personal tax team assists business owners, property holders, valuable partners and executives, mobile individuals, and their families.
We’ll help you realign your finances effectively and ensure your tax affairs remain fully compliant.
There are numerous strategies to reduce exposure to various taxes, all achievable with the right foresight and expert professional advice.
Effective tax planning begins with a clear intention to minimize potential liability by taking appropriate steps, such as making full use of available tax allowances within the required timelines.
Our advice is custom-tailored to each individual’s situation. Book a free consultation to explore how we can help you plan your taxes effectively.
We take the time to understand your circumstances in depth. Our approach considers not only your finances, business, and property but also your personal circumstances, ambitions, and life goals.
This allows us to see the bigger picture. We examine your tax position holistically and design a comprehensive solution that meets your needs while lowering your tax liability.
Working with a Tax Planning Accountant
at Simplified Global Accounting Solutions
1. Ready Your Information
Familiarize yourself with the applicable tax types—use this page as a guide. Gather your details and share them with us to enable effective tax planning.
2. Contact Us
Fill out the form below to book a free consultation. We’re here to help you understand the benefits of working with us and how it suits your personal situation.
3. Become a Client
If you seek peace of mind and like our service, come on board with us for your personal tax planning needs.
Personal Tax Planning
Personal tax is a broad subject. Taxpayers in the UK currently have access to over 1,000 tax reliefs, which are continually updated. Our expertise in tax planning and experience in personal services make us trusted advisors for our clients throughout their lives and careers.
Our Personal Tax Planning Services Include:
Personal Allowances and Reliefs
Your Personal Allowance is the portion of income you do not pay tax on. For 2019–20, the standard Personal Allowance is £12,500. Income above this allowance is taxed between 20% and 45% for non-savings income.
For income between £100,000 and £124,000, the Personal Allowance is gradually withdrawn, resulting in a marginal rate of 60% for non-savings and savings income.
You can transfer £1,250 of your Personal Allowance to your spouse or civil partner if neither of you is a higher-rate taxpayer. Blind Person’s Allowance may increase this further.
Basic rate taxpayers can earn up to £1,000 of savings interest tax-free, while higher-rate taxpayers can claim £500 tax-free interest. No relief is available for additional rate (45%) taxpayers.
Personal Allowance Planning Considerations:
Ensure everyone is taking full advantage of their Personal Allowance. Consider the transferable marriage allowance.
Explore unused allowances this tax year.
Assess options to benefit from marginal tax rates and reduce income taxed at higher rates.
Consider tax-free alternatives to bonuses or salary increases.
Check eligibility for Rent a Room Relief.
Capital Gains Tax (CGT)
CGT applies to profits made when selling an asset at an appreciated value, not the total amount received. Gifts to spouses, civil partners, or charities are generally exempt.
Individuals have a £12,000 tax-free annual exemption; trusts can claim £6,000. Married couples or civil partners can therefore claim up to £12,000 tax-free.
CGT rates vary depending on income: 10% within the basic rate band and 20% beyond it. For residential property and carried interest, rates are 18% and 28%, respectively. Trustees pay 28% on similar disposals.
Business owners can benefit from Entrepreneurs’ Relief, which applies a lower 10% rate on qualifying gains, with a maximum lifetime allowance of £1 million.
CGT Planning Considerations:
Have you used your annual exemption?
Can family members’ tax-free exemptions reduce your liability?
Should future gains be transferred into joint names?
Are there capital losses to offset gains?
Can gains be deferred or rolled over?
Could assets outside an ISA be arranged to generate tax-free income?
Review buy-to-let portfolios for tax efficiency; consider incorporating properties into a company.
Check main residence election if multiple properties have been used as a home.
Inheritance Tax (IHT)
IHT is generally charged at 40% on estates exceeding £325,000.
A £100,000 residence nil-rate band (since 6 April 2017) may be available, rising to £175,000 by April 2020, giving a maximum nil-rate band of £500,000 per individual (£1 million for married couples/civil partners).
Unused nil-rate bands from the first death may transfer to a surviving spouse.
Gifts made within seven years of death are added back to the estate but may qualify for exemptions or tapered reductions.
IHT Planning Considerations:
Is your will up to date, and are your executors suitable?
Are you taking advantage of exemptions, including the annual £3,000 exemption, gifts from income, or marriage/civil partnership gifts?
Consider discounted gift trusts to give lump sums while retaining income for life.
Can surplus assets be gifted to reduce your taxable estate?
Should investments be restructured into IHT-efficient products?
Pension Contributions
There are limits to how much you can contribute before incurring tax charges. Contributions to a UK pension scheme may qualify for tax relief based on net earnings and annual allowances.
Annual allowance is currently £40,000 for incomes below £150,000, with a minimum allowance of £10,000 for incomes of £210,000 or higher.
Individuals with threshold income above £110,000 may have additional rules. Carry forward unused allowances from the previous 3 years if a pension fund was in place.
Lifetime allowance is £1 million; exceeding this may trigger a tax charge.
Pension Planning
If you are over 55, you can request a pension drawdown, even if you are still working. However, early access may carry restrictions and additional costs.
When do you plan to retire, and what will your real income be at that time?
Should you consider increasing your pension contributions?
Have you reviewed both employee and employer pension contributions to ensure you haven’t exceeded the annual allowance?
Have you considered the potential inheritance tax benefits of maximising your pension fund?
ISAs (Individual Savings Accounts)
Individuals 18 or older can invest up to £20,000 in an ISA. Growth, income, and withdrawals are free of income and capital gains tax, though the value forms part of your estate for inheritance tax purposes.
A Junior ISA of up to £4,368 is available for those 17 or under.
Within the £20,000 ISA allowance, you can invest £4,000 per year into a Lifetime ISA, which attracts a 25% government bonus. Funds may be used for a first home purchase or retirement, subject to scheme rules and early withdrawal penalties. Must be aged 18–40 to open.
Help to Buy ISAs allow individuals over 16 to save up to £200/month toward their first home. An initial lump sum of up to £1,000 can be deposited. The account earns interest and qualifies for a 25% government bonus (up to £3,000) if used for purchasing a home.
ISA Planning Considerations:
If you don’t already have an ISA, should you open one this tax year?
Are you making full use of the maximum tax-free investment allowance?
Tax Credits
Individuals on low incomes may be eligible for tax credits or Universal Credit (all existing claimants will migrate to Universal Credit by March 2022).
Calculations involve three key figures:
Maximum benefit – the amount receivable if you had no income (some income may be disregarded).
Net income – usually earnings after tax, National Insurance, and pension contributions; notional income may be added if capital exceeds a threshold.
Allowance – the maximum income that allows you to receive full benefit; any excess income reduces the benefit proportionally.
Tax Credit Planning Considerations:
Check eligibility for these benefits—even individuals with relatively high incomes may qualify.
As capital may be treated as income for benefit purposes, it can be wise to gift funds or invest in property improvements (property value is generally not counted as capital).
Be aware of rules preventing blatant capital reduction.
Non-UK Domicile Taxation
Since 6 April 2017, non-domiciled individuals are treated as UK domiciled for tax purposes if:
They have been a UK resident for 15 of the past 20 years, or
They were born in the UK with a UK domicile of origin.
Inheritance tax is charged on UK residential property held indirectly via offshore structures, such as trusts or companies.