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.
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.
