General financial information that you may be useful when dealing with certain life events.
TAX PLANNING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY
TAXATION - INFORMATION IS BASED UPON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEF FROM TAXATION, ARE SUBJECT TO CHANGE.
TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE.
Capital Gains Tax.
Individuals are entitled to an annual exemption. If you think that your investments have made substantial gains and you have not yet made use of your annual allowance, you should consider taking financial advice as you may be able to utilise your annual allowance, or reinvest in an ISA (subject to the ISA limits).
Income Tax is a tax you pay on your income. You don't have to pay tax on all types of income. You pay tax on things like: money you earn from employment, most pensions, interest on savings etc.. You don't pay tax on things like: income from tax-exempt accounts, Individual Savings Accounts (ISAs) and certain state benefits such as Personal Independence Payment.
Couples who have signed a civil partnership are treated by HM Revenue and Customs (HMRC) the same as a married couple. A civil partnership must be registered in order to fall within the new rules.
The Inheritance Tax threshold remains unchanged for 2018/19 at £325,000, whilst the family home allowance has increased to £125,000. This means individuals (with direct dependants) will be offered a family home allowance so they can pass their home on to their children or grandchildren tax-free after their death.
Certain lifetime gifts can be made without giving rise to an inheritance tax charge. You can give away £3,000 worth of gifts each tax year (6 April to 5 April) and it is worth considering making a gift of this amount if you are in a position to do so.