The start of another tax year provides a fresh opportunity to make New Year’s resolutions, especially if you are looking to minimise your tax liabilities.
Consequently, we will summarise how businesses and individuals can take advantage of measures that have just come into effect, as well as those to be introduced next year.
With the annual and lifetime allowances for pension contributions set to drop to £40,000 and £1.25 million from 2014-15, this is the last chance for individuals to maximise their contribution levels.
Individuals can now also benefit from increases in the annual exempt amount for income and capital gains tax, which have risen to £9,440 and £11,000 respectively.
Furthermore, the introduction of both the patent box regime and an above the line R&D tax credit for large companies and some SMEs provides opportunities for entrepreneurial businesses to make substantial savings.
Investors can now take advantage of an increased ISA allowance of £11,520 (of which £5,760 can be in cash), as well as relief for 50 percent of capital gains realised in 2013-14 which are reinvested through SEIS in 2013-14 or 2014-15.
Another consideration is the new Annual Residential Property Tax (ARPT) for properties worth more than £2 million owned by non-natural persons. Consequently, individuals looking to buy residential property in the UK should consider the most appropriate vehicle for their purchase in order to minimise their liabilities.
These are just some of the ways currently available to gain maximum financial advantage. For more information on any of the ideas discussed, please contact us.