7 ways to Save Tax
This year’s Finance Bill has taken the UK tax code up to over 10,000 pages, making it the longest and most complex tax legislation in the world. So what does this mean for you? Quite simply it creates many, many ways of saving serious amounts of tax legally.
Here are some of the strategies available:
Reducing the tax on growing businesses.
For growing businesses launching something new (product, market, office) it is possible to structure the business in a way so the end result is that 5-10 years of expansion profits can effectively be earned free of tax. And this structure allows businesses to reward, motivate and retain key people.
Advanced remuneration planning for companies
For companies that are looking to pay their key employees/directors in excess of £100,000 in discretionary bonuses their personal income tax can be reduced from 40% down to as little as 2.5%.
Corporation tax mitigation
For companies with over £100,000 profits these can be sheltered from tax completely.
Income tax mitigation
For individuals with (typically) over £100,000 pa for any of the last 4 tax years there are strategies to completely eliminate tax bills.
Reducing the cost of commercial property
Have you bought (or are you thinking of buying) commercial property at a cost of more than £300,000. It is possible to claw back 20-40% of the costs by reclassifying them as plant and machinery. This can result in big savings…and sometimes a big cheque from the taxman.
Reducing inheritance tax
There are a range of strategies available; from simple will-based planning to add up to £200,000 cash to your bank account during your lifetime and save your family over £100,000to more advanced planning which can result in reducing IHT liabilities to zero.
Stamp Duty Land Tax
Reducing or even eliminating SDLT on residential or commercial properties over £500,000