Specialised Tax Services
Advisor Link is dedicated to assisting you in making well-informed and strategic choices regarding the planning of tax liabilities. The tax system in the UK is notably intricate, and effectively navigating it to ensure your finances are optimized for tax efficiency can prove to be a challenging endeavor. The greater the tax burden, the more challenging it becomes for your investments to meet your financial goals.
Additionally, wealth intended for future generations can be significantly diminished by taxes if not properly structured. Our panel of highly skilled partnering advisors is available to ensure that you fully capitalize on your hard-earned assets. Our panel provide comprehensive tax and inheritance tax planning designed to enhance the financial well-being of you and your family throughout your lifetime.
Navigating the 60% Tax Trap
Individuals with earnings ranging from £100,000 to £125,140 face a constrained personal allowance, which places them in the 60% tax trap. For each £100 of income within this range, only £40 will be retained after taxation, as £40 is deducted for income tax and an additional £20 is forfeited due to the reduction in the personal allowance. This situation results in an effective tax rate that escalates to an astonishing 60% or higher.
Savings and Dividend Incomes
Basic rate taxpayers can earn up to £1,000 in interest on their savings without incurring tax liabilities, thanks to the Personal Savings Allowance.
In contrast, higher rate taxpayers are entitled to a reduced allowance of £500. Additional rate taxpayers do not receive any allowance. Furthermore, the Dividend Allowance has been set at £1,000, which is a reduction from the previous amount available in the 2022/2023 tax year.
CGT
Capital Gains Tax (CGT) is a tax on the profit when you sell something that has increased in value. CGT applies only to the gain you make, not the amount you receive for the asset. Gains from most personal possessions can be liable to CGT.
The annual exempt amount for individuals is £6,000 and reducing to £3,000 for the next tax year 2024/25. Effective and repeated use of your CGT annual exempt amount enables the transfer of assets into ISAs or pensions to provide a shelter from any future tax liability on income or gains.
Get to Know Us
At Advisor Link we are proud to work with industry-leading professionals who share our commitment to delivering high-quality, client-focused services. Effective Tax Planning is about maximising the fruits of your hard work, and we are here to help you achieve that with the utmost care and professionalism.
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