Tax Planning Tips for the Year Ahead

Here are our top tax planning tips to help optimise your fiscal affairs in the coming tax year. 

1.  Use your allowances

Most allowances are set per tax year, and if you don't use them - you lose them!

Read our top allowances tip here.

2. Scottish Taxes – Scottish Rate of Income Tax (SRIT)

The Scottish Parliament has devolved powers over some tax matters, including the Scottish Rate of Income Tax which applies to non-savings and non-dividend income. 

Read out top SRIT tip here.

3. Scottish Taxes – Land and Buildings Transaction Tax (LBTT)

LBTT applies to property transactions in Scotland.  There are different rates for residential and non-residential transactions – the marginal rates of residential LBTT can be as high as 15%. 

Read our top LBTT tip here.

4. Residential Property Taxes

Land and property continues to be popular with investors, despite the numerous changes made to residential property taxation over recent years.  

Read our top residential property taxes tips here.

5. Charitable Giving

Whilst the most common form of charitable giving is via gift aid, unexpected tax liabilities can sometimes arise. Here are our tips on how to avoid additional tax burdens on charitable financial gifts.

Read our top charitable giving tips here.

6. Inheritance Tax – Residential Nil Rate Band

With increasing property prices, more families will be brought into the scope of inheritance tax. This new allowance provides an additional relief.

Read our top inheritance tax tips here.

7. Entrepreneurial Taxes and Tax Efficient Investments

Entrepreneurs’ Relief (ER) can reduce the rate of CGT to from 20% to 10%. There are also a limited number of tax efficient investments that may be made.

Read our top entreprenurial taxes tips here.

8. Residence and Domicile Changes

The Finance (No2) Act 2017 was enacted in November 2017, but it made significant changes to the residence and domicile position for many.

Read our top residence and domicile changes tips here.

9. Making Tax Digital (MTD)

Although the Government’s plans for Making Tax Digital have been postponed, it is clear that the intention is to shift to more frequent digital reporting of income.  

Read our top MTD tips here.

10. Pension Planning

Scottish resident taxpayers earning in excess of £26,000 will have a higher marginal rate of income tax than in the rest of the UK.  This provides an added incentive to make pensions contributions. 

Read our top pension planning tips.

The summary and top tips detailed above should not be regarded as tax advice, and Johnston Carmichael LLP assume no liability for any consequential loss from action taken, or not taken, by any individual (or other person).