We can help you to create opportunities to reduce your marginal tax rates by careful identification of appropriate strategies.
|Situation||Possible strategy||Possible result|
|Income from assets taxed at 40%/45%||Transfer to spouse if he/she pays tax at lower rates Transfer into joint names||Tax @ 40%/45% reduced to 20% or less Half of income taxed at 20% or less|
|Proposed sale will give sizeable capital gain||Transfer to spouse if he/she can use his/her annual CGT exemption or spouse has unused CGT losses Transfer into joint names defer sale of 50% until after the end of the tax year||Additional £11,100 (maximum) of gain tax free Cover part or all of gain with losses Double exemptions and deferring some tax by 12 months|
|One spouse rich in assets – wish to make gifts within CGT and IHT limits||Transfer to the other spouse, who can then make gifts in parallel||Double exemptions|
Gifts must be outright to be effective for tax, and must not comprise a right only to income.
Transfers on or within say seven years of death to a spouse domiciled outside The Gambia may be exempt only to a certain extent.