Taxations & Trusts
Tax is one of the certainties in life, but why pay more than is necessary?
Potentially every individual may be liable to any of the following taxes throughout their lifetime: -
- Income Tax and National Insurance on earnings
- Capital Gains on profits achieved
- Value Added Tax on goods purchased
- Inheritance Tax - payment of tax on your accumulated estate at death
Kingfurness aim to assist in the mitigation of any liability to tax by the most appropriate method possible through specialised tax planning. Our advisors will fully appraise your current position and recommend a bespoke strategy to ensure you optimize any tax exemptions/allowances providing maximum tax efficiency wherever possible.
Income Tax
Income tax is an annual tax on income levied by the Government. Every UK resident is entitled to a personal allowance before the relevant tax rates are applied. As introduced by the previous Labour Government, the new higher rate of income tax is 45%.
Kingfurness is able to identify the most efficient tax planning options available to you and recommend income tax mitigation wherever possible.
Capital gains tax (CGT)
Capital gains tax is a tax on gains arising from disposals of certain capital assets. The tax is levied on the total of all chargeable gains accrued on the disposal of assets in a tax year, after deduction of losses. Tax is charged on the person making the disposal, not on the person receiving the asset. Spouses and civil partners are taxed individually on their own gains.
One of the first taxes attacked by the new Coalition Government in 2010 was the introduction of a new higher rate for CGT. Previously CGT was charged at a flat rate of 18% however the Chancellor, George Osbourne, introduced a second rate of 28% for higher rate taxpayers. With the withdrawal of the Taper relief (for both business and non business assets) and indexation allowance by the previous Government, it is now essential that an individual, or company, is fully organised and prepared for their tax arrangements.
Kingfurness is able to produce CGT computations and is constantly reviewing legislation changes allowing the provision of an individual specialist service with the aim of reducing and mitigating an individuals or company’s, CGT liability wherever possible.
Inheritance Tax
Many people still believe that Inheritance Tax (IHT) is only for the rich, however according to the annual tax action report by Unbiased.co.uk, £2 billion was wasted due to poor inheritance tax planning.
Inheritance tax is a tax, which may be charged on a transfer of value from one person (the donor) to another (the donee). The tax may be levied: -
- At the time of the transfer; and/or
- Upon the death of the donor; and/or
- As a consequence of the actions or inactions of the donee.
IHT may be levied at a rate of up to 40% on all assets over the nil-rate band, if available. Unfortunately, in many cases IHT is payable on an estate where it could easily have been avoided, Kingfurness can provide solutions to suit your individual needs.
Inheritance Tax has many exemptions and reliefs, however, are you taking advantage of them? Kingfurness offer a bespoke solution to Inheritance Tax with a comprehensive range of solutions available which, individually or in combination, can achieve most people's objectives in relation to their circumstances by reducing the level of liability to IHT.
Trusts
A trust is a way of arranging property for the benefit of other people without giving them full control over it. There may be a number of different reasons for arranging a trust, however, predominately a trust will be created to mitigate some form of taxation.
Kingfurness is able to provide technical advice in recommending suitable trust arrangements whether it is for tax mitigation, protection or simply to maintain control of a specific asset. The main trusts we specialise in are: -
- Discounted Gift Trust (Flexible and Bare)
- Discretionary Trust
- Flexible Trusts
As Kingfurness work closely with specialist Trust and Tax lawyers, we are able to provide a simple solution to a complex problem. If you would like help then you can contact us to arrange an exploratory, no obligation discussion, which would indicate the extent of your potential liability and how Kingfurness can help.
Trustee Obligations
The Trustee Act 2000 came into force on 1st February 2001 and applies to England and Wales only. The most significant change was the replacement of the limited investment powers under the Trustee Investment Act 1961 with a wider general power.
It is therefore important that Trustees are appropriately and professionally advised when making investment decisions for any Trust. Every Trustee has a number of duties: -
- Trustees must use utmost diligence to avoid any loss
- Trustees must ensure that they invest Trust money properly and monitor the investments regularly
- Trustees must keep proper accounts of all Trust Property
- To make sure that everything they do is for the benefit of the Beneficiaries
- To hold Trust Property and administer it for the benefit of the Beneficiaries, as directed by the Trust provisions
- To hold the title documents to Trust Property, e.g. Share Certificates
- To ensure the Trustees are registered as the legal owners on any relevant registry
Kingfurness has developed a professional relationship with a number of leading industry professionals including Lawyers, Solicitors and Accountants. This has allowed us to collectively provide a range of bespoke solutions dependant upon individual, Trust or specific needs.