In helping you to plan for inheritance tax minimisation, it may be beneficial to consider your estate and trusts.
Trusts enable assets to be given away while still retaining some control over them. Income can be paid to different persons with the capital ultimately going to other persons.
The main types of trusts which are used for tax planning purposes are the following:
- Interest in possession trust: this type is one in which one or more of the beneficiaries has a right to receive the trust income or has the use and enjoyment of the trust fund.
- Discretionary trust: this type is one where the payment of any trust income is at the discretion of the trustees.
- Accumulation and maintenance trust: this type is a suitable vehicle where the beneficiaries are under the age of 25.
We can review your existing trusts with a view to ascertaining their current tax efficiency or review your circumstances and advise on the most efficient kind of trust to meet your requirements. We will also examine draft trust deeds to ensure that they achieve your needs and will result in the most beneficial tax advantages for you.
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Millions of people from across the UK could be paying more tax than they need to, it has emerged, after figures from HM Revenue & Customs (HMRC) showed that more than 15 million individuals have not checked their Personal Tax Accounts.
The figure means that less than half of taxpayers have accessed their accounts, risking errors in the amount they pay.
Personal Tax Accounts were introduced by the Revenue in 2015 and include details of income, state pension records and National Insurance contributions.
They were intended to make taxpayers responsible for ensuring they are on the correct tax code.
Personal Tax Accounts can be accessed at gov.uk/personal-tax-account. Registration requires your name, an email address and a password. This will generate a 12-digit Government Gateway ID which will be needed in future when you log in.
You will also need to enter a phone number to generate a separate access code, which will be sent by text or automated call.
To access your account, you will be asked to enter information from a passport, payslip or P60 as well as to answer some security questions.
Under the income section, you will find information on your tax code, including deductions made by HMRC.
It is worth checking your Personal Tax Account as soon as possible. Figures show that 6.7 million people paid the wrong amount of tax last year because their tax code was wrong.