Farley And Partners

Create opportunities to save tax

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.

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