The current
climate is enormously hostile to tax avoidance.
Everyone will have seen the recent high profile cases where there have
even been calls for celebrities to lose their honours awarded by the Queen for
charity work after acting on advice from their tax advisers in schemes to
reduce tax liability.
Partner Darrell Collins explains, however, that there are
still lots of things that you can do to legitimately to save tax, using the
existing exemptions and allowances available to you and with a bit of simple
good advice you can safeguard your family’s financial future without inviting
the wrath of the Revenue.
The Courts
have said in the recent case of Pit v Holt “artificial
tax avoidance is a social evil which puts an unfair burden on the shoulders of
those who do not adopt such measures”.
However,
we live in a world where the National Audit Office reports that revenue raised
by inheritance tax to March 2013 was £3.1b. There are legitimate
straightforward steps that can be taken to limit liability for inheritance
tax. In the last few years there has
also been increasing emphasis on the payment of Capital Gains Tax and this is
of increasing relevance for those who wish to protect their property from being
used to fund care fees. The good news is
that, in the right circumstances, your home and your family’s future can be
safeguarded from heavy tax penalties.
For more
information about tax planning contact Darrell Collins at our Midsomer Norton
office on 01761 417575.