SPRING CLEAN YOUR PERSONAL

FINANCES TODAY!

Spring is sprung. Easter eggs are in the shops. The Chancellor has announced the Budget, and the New Tax Year is upon us!

 

Now is the time to spring clean your affairs and get your financial house in order.

 

Are you one of the four out of five people in Britain set to pay more tax than they need this year?

 

A recent survey by the Independent Financial Advice Promotion (IFAP) estimates that Britons waste £7.6 million a year in unnecessary tax.

 

Nowadays the emphasis has increasingly shifted to the individual being responsible for managing their own tax affairs but our awareness and actions are not always keeping pace with changes in the complex taxation regulations.

 

According to the IFAP survey, there are several areas where people are missing out. Amongst these were:

  • Forgetting to take simple Inheritance Tax planning steps, such as writing life insurance into trusts;
     

  • Self-assessment taxpayers missing out on the 31 January deadline for submitting their returns and automatically triggering a £100 fine.

    • There are many ways you can legally trim your tax bill.

    For instance, you should make sure you are not one of the 50% of people who have failed to make a will.

    Making a will, or even regularly updating an existing will, will ensure that:

  • Those people whom you wish to benefit from your assets actually do, and your assets are not subject to the distribution lottery that is the intestacy rules;
     

  • You can engage over a period of time in relatively complex Inheritance Tax planning, the object of which is to reduce the likely tax burden on your estate and maximise any benefit to your beneficiaries.

    • If you have foreign property, there may be hidden consequences for tax planning purposes and for passing it to the people you wish it to go to.

     

    Not all foreign countries allow you to dispose of property in that country as you wish.

     

    Capital Gains Tax, planning for your children’s university education and making a will are all areas of sensible financial planning which should be reviewed.

     

    Perhaps you are having to consider nursing or residential care for an elderly relative, in which case you need to plan the financial implications carefully.

     

    There are obviously many things that you can arrange by yourself, but where you need, you should take expert advice from a tax specialist who understands the complexities of tax planning.

     

    Sandersons Solicitors has specialised in taxation matters for over twenty-five years and can off you friendly, reliable advice. They offer both personal and business advice and have links with one of the Isle of Man’s leading financial institutions for off-shore tax options.

     

    If you would like to start your financial spring cleaning now with expert advice, please contact:

     

    Duncan Rann or Geraldine Martin

    Sandersons on 01482 324662

    or e-mail enquiries@sandersonssolicitors.co.uk

     

    Source:  The Journal, March 2006