Chartered Accountants of Poynton, Cheshire

The Basic Principles

Each member of your family is taxed as an individual, with personal allowances and exemptions.

With the right circumstances and careful planning, a couple with two children could have income and gains of at least £53,580 tax free, and up to £183,180 before paying any higher rate tax.

The Fundamental Rules are:

• Make the most of tax-free opportunities
• Keep marginal tax rates as low as possible
• Maintain a spread between income and capital

Five Personal Planning Pointers

1. Moving Capital
   Planning is often hindered by the potential for tax charges when assets are moved between family members.
   Appletons can advise you how to reduce your overall marginal tax rates by transferring assets between spouses and children in a tax-efficient manner.
2. Generation Skipping
   Consider tax-efficient gifts from grandparents. Income from capital gifted by grandparents or more remote relatives will be taxed as the child's. Regular savings through deposit accounts can also help.
3. Marriage Breakdown
   There are cases for and against making transfers as quickly as possible after separation. Check with us for the best plan of action.
4. Your remuneration package
   There are ways to improve your net pay, other than asking for a rise. Are you making the most of current benefits regarding pensions, company cars and expenses, and other benefits such as medical cover, or use of a computer at home?
5. A 'Living Will'
   As well as ensuring that you have adequate insurance cover, with life assurance perhaps written into trust for your spouse or children, you also need to make a Will.
   You will need to keep it under regular review, to ensure it reflects changes in your family and financial circumstances.
   We recommend that you and your spouse also execute an enduring power of attorney and a 'Living Will'