Personal Tax Planning Review Checklist 2012/13

The purpose of this checklist is to suggest strategies you may wish to consider as we approach the end of the 2012/13 tax year or planning opportunities available thereafter.

 

Strategies	Comment
Selling assets by 5 April ·         Can you use the available £10,600 CGT annual exemption(s)? ·         Inter spouse transfer to fragment gains? ·         Stagger disposal to double up use of exemptions? ·         Bed and spouse quoted investments to uplift base cost? ·         Any negligible value claim for assets that have fallen significantly in value? ·         Have you claimed your entitlement to Entrepreneurs Relief? ·         If your Company has ceased trading have you considered making a capital distribution?
Making gifts ·         Are you using your IHT annual exemptions? a.     Gifts £3,000 pa or double? b.    Small gifts same person £250 c.     Unlimited regular gifts from surplus income d.    Marriage gifts up to £5,000 depending on relationship ·         If there are potentially exempt transfers have you considered insuring against IHT? ·         Are there certain assets at a low value that may be transferred with minimum CGT? ·         Is your will up to date and do you have a lasting power of attorney? ·         Have you considered your exposure to IHT? ·         Have you written life assurance policies into trust to avoid IHT? ·         Is there scope to release equity in investment property by borrowing and gifting the cash? ·         Have you claimed gift aid on your self assessment tax return? ·         Any scope for a deed of variation on a deceased relative’s estate?
Second homes ·         Principal private residence election made within two years? ·         Considered varying any election?
Pensions ·         Have you considered maximising contributions before 6 April? ·         Have you claimed higher rate income tax relief on your self assessment? ·         Is there scope to put business property into a self administered scheme?
Tax efficient investments ·         Have you used your ISA allowance? ·         Considered EIS or VCT investments? ·         What about minimising income in pursuit of capital growth by investing in an investment trust? ·         How about buying gilt edged stock at a discount to produce a tax free profit on maturity?
Maximising use of income tax allowances and bands ·         Wages for spouse? ·         Tax efficient Partnership profit shares? ·         Transfer investments to any non/lower earner? ·         Joint ownership with spouse or civil partner to share income? ·         Considered replacing earnings with dividends?
Avoiding 50% or 45% income tax ·         Have you considered the tax advantages of incorporation to open up more tax planning possibilities, including the potential sale of goodwill? ·         Can you defer bonuses or dividends into 2013/14? ·         Potential for income splitting? ·         Are there assets that may be sold to the Company at low CGT rates? ·         Considered your Company holding investments to avoid higher income tax rates? ·         Could you limit income to accumulate capital that could be charged at lower CGT rates? ·         How about using loans paying refundable S455 tax and being taxed on the interest free benefit? ·         What about using salary sacrifice to take earnings below £100k?
Employment taxes ·         Consider NI deferral if more than one job or both employed and self employed? ·         Would you change your company car for a more tax efficient vehicle? ·         If you are taxed on car fuel benefit do you have a very high mileage? ·         Have you claimed the maximum authorised mileage rates for business use of your private car? ·         If your employer doesn’t pay the maximum mileage rates have you claimed a deduction for the shortfall on your self assessment? ·         What about using the HMRC approved enterprise management incentive scheme to retain or recruit key employees or help with succession? ·         Were your tax codes correct for 2012/13?
Tax management ·         Have you negotiated time to pay arrangements with HMRC to ease cash flow? ·         Have you applied to reduce self assessment payments on account where appropriate? ·         Will you need to ask HMRC to code out income tax underpayments up to £2,000? ·         Have any non taxpayers registered to receive interest from savings gross?