Managing personal taxes is an essential aspect of contributing to public finances and achieving long-term financial security. Income tax remains the UK’s primary source of government revenue, directly impacting state policies and public funding. Effective tax planning is crucial for optimising your finances, mitigating risks, managing liabilities, and preserving wealth. Personal tax obligations often represent a significant financial outlay, yet many individuals lack the time or expertise to manage them efficiently.
At Bloom Financials, we provide comprehensive, human-friendly, and tailored tax advisory services designed to help you navigate the complexities of personal taxation in line with December 2024 UK laws and regulations. Our certified tax advisors specialise in minimising tax liabilities through strategic planning, encompassing pensions, ISAs, inheritance tax, capital gains tax, and government-approved investment schemes.
Personal Self-Assessment Services
Tax planning begins with identifying potential liabilities and taking proactive steps to assess and manage them. At Bloom Financials, we deliver personalised self-assessment services tailored to your unique circumstances. Our team leverages the latest tax allowances, deductions, and rebates to minimise liabilities and optimise your tax position.
We understand that hard work should yield tangible benefits, which is why our experts are dedicated to ensuring you retain more of your wealth through strategic tax planning. Whether you’re managing a complex financial portfolio or seeking straightforward self-assessment guidance, our team is here to simplify the process for you.
Take control of your self-assessment today! Click here to get a customised quote for our self-assessment pricing.
Inheritance Tax (IHT) Planning
Inheritance Tax (IHT) applies to the estate of a deceased individual, including property, money, and possessions. The threshold for IHT in the UK is £325,000, with exemptions if:
The estate’s value is below this threshold.
Assets exceeding the threshold are left to a spouse, civil partner, charity, or community amateur sports club.
If your estate value exceeds the threshold, estate planning can significantly reduce IHT liabilities. Rising property prices have made IHT planning more critical than ever. At Bloom Financials, our estate planning accountants help you maximise tax efficiency, safeguarding your lifetime savings for your loved ones.
We guide you through allowances, exemptions, and tax reducers to develop a customised strategy. Act now to protect your legacy with expert estate planning.
Capital Gains Tax (CGT) Services
Capital Gains Tax (CGT) is a tax on the profit made when selling or disposing of chargeable assets that have increased in value. It’s essential to note that the tax is applied to the profit earned, not the total sale price of the asset. Navigating CGT can be complex, as the tax rates and rules vary based on the type of asset, its use, and your overall income tax status. Bloom Financials provides expert guidance to help you understand, calculate, and manage your CGT obligations effectively.
What Are Chargeable Assets?
Chargeable assets include a wide range of items, and CGT becomes payable when these are sold, exchanged, or given away and their value has appreciated. Examples of chargeable assets include:
- Personal Possessions: Valuables like jewellery, artwork, antiques, and collectables worth over £6,000, except for motor vehicles.
- Property: Any property that is not your primary residence, including rental properties, second homes, or commercial buildings.
- Shares and Securities: Stocks and shares not held in tax-advantaged accounts like ISAs (Individual Savings Accounts) or PEPs (Personal Equity Plans).
- Business Assets: Items such as equipment, machinery, or premises owned and used by a business.
- Collectables and Investments: include precious metals, bonds, or other high-value investments.
2024 CGT Rates in the UK
The amount of CGT you pay depends on your overall taxable income and the type of asset you’ve disposed of. Current rates for 2024 are as follows:
For Higher/Additional Rate Taxpayers:
- 28% on gains from residential property.
- 20% on gains from other chargeable assets.
For Basic Rate Taxpayers:
- 18% on gains from residential property.
- 10% on gains from other chargeable assets.
The portion of your capital gain that falls within your unused basic rate tax band is taxed at the lower rate, while the remainder is taxed at the higher rates.
Key Considerations for Capital Gains Tax
- Annual Exempt Amount (AEA): For 2024, individuals have a tax-free allowance (currently £3,000 for individuals and £6,000 for trusts). Gains exceeding this threshold are subject to CGT.
- Reliefs and Exemptions: Specific reliefs, such as Private Residence Relief for your main home and Entrepreneurs’ Relief for qualifying business disposals, can significantly reduce CGT liabilities.
- Losses: Capital losses can be offset against capital gains, lowering your tax liability.
- Inheritance and Gifts: Transfers to a spouse or civil partner are generally exempt, but other gifts, like those to children or non-relatives, may trigger CGT if the asset has been appreciated.
How Bloom Financials Can Help
Understanding CGT is essential for effective financial planning, whether you’re an individual or a business. Our comprehensive CGT services include:
1: Expert Consultation and Planning:
- We evaluate your assets and financial position to provide personalised advice tailored to your circumstances.
- Our team identifies applicable tax reliefs and exemptions to minimise your liability.
2: Accurate Calculations and Reporting:
- We ensure precise CGT calculations, considering all allowable costs, reliefs, and exemptions.
- Our experts help you compile and report gains in compliance with HMRC regulations.
3: Tax-Efficient Asset Disposal:
- Guidance on the timing of asset sales to optimise your tax position.
- Strategies to spread gains over multiple tax years, reducing the tax rate applicable to your profits.
4: Relief Optimisation:
- Assistance in claiming Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) or Rollover Relief for reinvested gains.
- Advice on reliefs specific to agricultural or business property.
Who Needs CGT Assistance?
- Property Owners: Whether selling an inherited property, a buy-to-let property, or a second home, CGT planning can significantly increase your net profit.
- Investors: If you hold shares or other investments outside tax-sheltered accounts, CGT planning ensures that your portfolio remains tax-efficient.
- Business Owners: Disposing of business assets requires careful planning to maximise tax reliefs and minimise liabilities.
- Collectors: Selling high-value items like artwork or antiques may result in substantial tax obligations without proper planning.
Tax Credits and Incentives
Tax credits and incentives are powerful tools for reducing tax burdens and enhancing financial outcomes. However, many individuals and businesses miss out due to a lack of awareness or understanding of eligibility criteria. At Bloom Financials, we help clients unlock the full potential of available tax credits, ensuring no opportunity is overlooked.
Examples of UK tax credits and incentives include:
- R&D Tax Credits: For innovation in goods, systems, or processes.
- Patent Box Relief: For income derived from patents.
- Capital Allowances: For investments in business equipment.
- Creative Industry Incentives: For film, TV, video games, and more.
- Annual Investment Allowance: For small and medium-sized businesses.
- Our holistic approach to tax planning ensures that credits and incentives align with your broader financial strategy.
Why Choose Bloom Financials?
At Bloom Financials, we pride ourselves on delivering tailored advice that addresses your unique tax requirements, ensuring every aspect of your financial situation is considered. Our commitment to compliance means we adhere strictly to the latest 2024 UK tax laws and regulations, providing accurate and legally sound solutions. With a team of certified advisors boasting years of expertise in both personal and business tax planning, you can trust us to guide you through even the most complex scenarios. Beyond offering expert insights, we provide proactive support, handling everything from tax-saving strategies to efficient filing processes so you can focus on what truly matters.
Let us simplify your taxes while you focus on what matters most. Contact Bloom Financials today for a consultation!
