Tax Planning

Tax planning can help individuals, families and company owners to benefit from by current tax incentives. Which strategies will be relevant to you will depend on your unique situation, but your Wren Sterling financial adviser will always ensure that you stay compliant while you preserve your wealth.

It’s estimated one in six people actually overpay tax to HMRC – and so claiming all your allowable expenses and the reliefs to which you are entitled should be a key part of your tax return.

The countdown to the 5 April is the perfect time to ensure you’re making best use of your investment allowances. Actions to consider could include maximising the use of your pension annual allowance (generally £60,000 but this is an area with lots of complex rules), ISA investment limits (£20,000 for adults) and gifting rules.

You may know that you can make gifts to charity in your Will as part of your estate planning – but did you also know that you can minimise your income tax by donating to a cause you care about? You can claim tax-relief when filling out your self-assessment tax return, declaring your charitable income and reclaim any tax relief you’re owed. This can be especially useful if your income one year is likely to push you into a higher tax bracket.

Gains from almost any kind of personal possessions can be liable to CGT, including shares and investments, buy-to-let properties, second homes, and other possessions like art. A financial adviser can help work out how much you will pay. Gifting, making pension contributions and using your annual allowance can all help you mitigate your Capital Gains tax bill.

Don’t wait for the countdown to the 5th April to make use of your investment allowances. Benefit from investment growth throughout the year, starting by using your ISA investment limits and pension annual allowance.

Aside from being open and honest with your spouse (or civil partner), there are other benefits to planning your finances with your partner. It is possible to allocate income between spouses to maximise allowances and tax bands. Examples include the Marriage Allowance and dividend distribution between a business owner and their shareholders. Whether or not these are applicable to you will depend on your financial situation.

How much income tax you pay will depend on how much you earn. Your Personal Allowance (£12,570 correct tax year 2024/25) is the amount you can earn without income tax. After this point, tax will be paid at your marginal rate.

UK Tax rules are complex. If you’re struggling to understand which allowances and reliefs are applicable to your situation, we recommend seeking advice.

Make sure your financial adviser is aware of all investments, savings accounts and pensions, even if they’re managed elsewhere. Omitting these could mean that their recommendations are inappropriate. Make sure your records are accurate and complete.

Gathering the following documents will help your adviser get a clear picture of your finances; personal identification documents (such as a passport, birth certificate, proof of address), income documents, expense records, employment records, investment statements and pension records.

The Government provides various tax reliefs and incentives to support small business owners. This is welcome, but can be overwhelming. At Wren Sterling our Workplace service allows us to over personal and corporate financial advice to business owners, using advisers who are able to work cohesively on your behalf.

Tax planning is the process of working with a financial planner to structure your plans in a tax efficient way. High-income earners can develop complex plans over time, overlooking opportunities that may benefit them. Planning with a financial adviser could help you to lessen the rising tax burden – and we’re here to help.

We have network of local financial advisers across the UK, so you can work side-by-side with an expert face to face, by phone or online. Get in touch.