Tax Mitigation

Tax on Investments

The two main taxes we are faced with on our Investments are either Income Tax or Capital Gains Tax.

The government allow you to invest into ISA’s which are free of both of these taxes bar the tax dividend, but unfortunately the limits to which you can invest tax efficiently are quite small. However this is the first place our advisers look when selecting Investments for you.

There are a variety of other styles of Investments and please read our Investments page for more detail. To advise on the most suitable style of investment we need to find out about your existing tax position as well as your potential future tax position. We simply couldn’t advise you without this information.

Taking just 2 of the main styles of investment opportunities you can see the difference in how they are taxed.

  • Investment Bonds are taxed against Income Tax
  • Unit Trusts / OEIC’s are taxed against Capital Gains Tax and Income Tax

Which style is the most suitable one for you? The answer cannot be given here as other factors can affect what is deemed “best advice”. Only sitting down and working out an individual strategy can we safely say which is the most suitable route for you to follow.

Inheritance Tax

A tax that was originally designed to tax the rich is now affecting more and more of us as so make sure you check your allowances and plan in advance to avoid this unnecessary tax.

Currently, the first £325,000 of an individual's estate is taxed at 0% and is therefore not liable to Inheritance Tax. For married couples and registered civil partners it is currently £650,000, if the full allowance is passed to the surviving spouse. As of April 2017 an additional £100,000 allowance is available and is referred to as the Residential Nil Rate Band thus making an individual’s total Nil Rate Band £425,000. This will increase by a further £25,000 for the next 3 years until the total Nil Rate Band becomes £500,000 per individual. There are many qualifying rules so please discuss these with your financial adviser as you may not qualify for the additional RNRB. Anything in excess of this amount is taxed at 40% on death. Please note that there is no inheritance tax to pay between UK Domiciled married couples and registered civil partners on first death.

There are numerous ways to mitigate inheritance tax and here are a few of the main options for you:

  • Write a Will
  • Transfer assets in your own lifetime
  • Take out a Whole of Life Assurance plan to pay any potential tax
  • Invest in Inheritance Tax friendly environments

This section here is too short to fully explore the world of inheritance tax so please use the contact us page to arrange a personal meeting to go into more detail.


Amazingly, the vast majority of us are still to write our Wills ! Perhaps we will live forever; or perhaps more likely, “I’ll get round to it later” are the reasons why?

The real reason we don’t write Wills when we should is usually because we are not aware of the consequences if we don’t.

Dying without a will is called dying “Intestate”. If you are not married then unfortunately your entitlement to your common law partners estate is NIL. Common Law partners do not exist in the eyes of the law on this issue. Even for those of you who are married, you will not receive all of the estate if your spouse was to die.

We write Wills on a not for profit basis. We cover our legal expenses and ask for a £20 donation to our chosen charity NSPCC. A pair of Wills for a couple should cost no more than £80 including your donation. Each case needs to be assessed individually so please contact us for more information.