“With the current restrictions on deducting loan interest from your rental income, now is a good time to review the overall structure of your debt.
Together with your financial advisory team, review both business and personal debt to ensure it is best structured for tax mitigation and risk.”
“Many families have significant imbalances between the earnings of spouses, and potentially other family members.
In conjunction with your tax advisors, ensure, where possible, that the earnings of spouses are equalised and consider using the allowances of children too.“
“Retaining highly skilled staff is a priority for businesses. Using share options as an incentive might provide you with a key difference to your competitors.
Discuss the possibility of share options with your tax advisers to determine whether these can be used to reward loyal team members.”
“In order to stay ahead of competitors, most companies who make products have to innovate to make their product better, cheaper or even brand new.
Check your eligibility to claim R&D tax credits to provide enhanced tax relief for development costs.”
“Many people have more income than they require, but equally have an inheritance tax (IHT) issue which grows year to year as their estate grows.
By making gifts out of surplus income, inheritance tax breaks can be significantly enhanced and stem the growth of IHT exposure.”
“Whilst family trusts can be highly complex and often expensive to administer, when used in the right circumstances they can provide valuable succession support, particularity in relation to asset protection.
If you are considering succession planning, discuss with your tax adviser whether trusts might be a valuable option.”
“If you are building your own property, have you ensured that you have recovered as much of the VAT suffered on your construction costs as possible?
Discuss the position with your accountant to determine your full eligibility to recover VAT, and watch out for the time limits.”
“Employees are a company’s most valuable asset. Selling your shares to your employees through an Employee Ownership Trust (EOT) should be considered as part of any exit strategy as this offers excellent tax breaks and great flexibility.”
“Many personal tax payers have significant income, but have very little scope for reducing their personal tax burden.
With a careful use of pensions, Enterprise Investment Scheme (EIS) or other similar tax efficient investments, you could significantly reduce your tax bill whilst making savings.”
“If you are thinking of selling your business, seek appropriate tax advice as an unclear agenda for why you are selling your business could result in added tax risks and liabilities.”