….Or Paddling A Stream, let your thoughts turn to… taxes. Sure, it’s a lot easier not to think about taxes until you have to, but by then it’s usually too late to do anything that might make a difference. Late summer, when your blood pressure is nice and low, is the perfect time to decide whether you need to take any steps to prepare for this year’s taxes. Consider the UK tax table 2014 before you stop reading:
£0 – £31,865 pay tax at the basic rate of 20%
£31,866 – £150,000 pay tax at the higher rate of 40%
Over £150,000 pay tax at the additional rate of 45%
A National Insurance Contribution is also charged at the following, to taxpayers earning;
Below £153 per week – Nil
£153 – £805 per week – 12%
Over £805 per week – 2%
Apologies if your blood pressure just jumped higher. Take a deep breath and decide whether these tips can help.
Manage your taxable income effectively. It may be possible to reduce your taxable income by deferring it, making contributions to pre-tax investments (like retirement accounts), and making gifts of income producing investments or cash to family members.
Generate investment losses. Selling depreciated assets can help generate losses and losses may offset capital gains.
Transfer savings and investments to your partner. Transferring savings and investments to your partner can save tax if you are part of a couple where one person is in a lower tax band than the other.
None of the above is intended as tax advice. It’s food for thought. Before you do anything, talk with a tax professional about your financial situation.
Lexington is the trading style of Lexington Wealth Management Ltd. (registered number 05503144) and Lexington Associates Ltd. (registered number 12451550). The registered office for both is Orchard House, Bagbury Lane, Lydiard Millicent SN5 4LX.
Lexington Wealth Management Ltd. is authorised and regulated by the Financial Conduct Authority (No. 440099). Lexington Associates Ltd. provides non-regulated lifestyle financial planning and estate planning services.
The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved disputes between regulated firms and their clients.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as financial, tax, or legal advice. Please consult a financial, legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
Additional information about Lexington and its planners is also available online at the FCA’s register.
Copyright 2022 Lexington Wealth Management. All rights reserved. This content cannot be copied without the express written consent of Lexington.
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