A progressive, South West based accountancy practice

TAX SAVINGS

Property transfer

We have acted for a long time for a family who own the premises from which their business trades. Last year, Steve advised them to transfer the property from the older generation to the younger one to better reflect the reality of their trading arrangements, and the provisions of the older persons’ wills. The result is a tax refund for the father of £701.38 and annual savings of over £1,500 in future.

Share schemes

Andy noticed that the earnings a client was making from his pension nearly brought him into the higher rate band, however, due to his wife’s lower income Andy discussed changing their share scheme so she would take the larger portion of shares. (81 – 19)

This allowed the couple to withdraw a higher income by way of dividends from the company and make an approximate tax saving of £1,750 as a couple. And this is likely to repeat every year. Result!

COMMENT