Looking to reduce your tax liability through planning? Come to us for advice about minimising your liability for Capital Gains Tax and Inheritance Tax.

Financial & Tax Planning Services

At Gibson Kerr, we hope to look after you throughout your life - so we aim to know enough about your situation to provide effective advice on tax. Our expertise, experience and up-to-date knowledge about legislation and law will ensure you find the best way to reduce your tax liability.

UK Tax law offers various allowances and reliefs on tax. HMRC publicises guidelines on the various exceptions and allowances, but does not offer bespoke advice on how best to utilise them. These reliefs can be applied to tax which arises on your income, the sale of certain assets or the profits of trade. Understanding and applying these reliefs is not always easy which is where Gibson Kerr's tax and finance specialists come in. Our tax solicitors can tailor a plan to suit your exact circumstances.

Misapplying these allowances and reliefs may amount to tax evasion which is illegal, as opposed to tax avoidance which is not.

What is the difference between tax evasion and tax avoidance?

Tax avoidance is the perfectly legal practice of arranging your financial affairs to limit the amount of tax you have to pay. Tax evasion on the other hand, is the illegal avoidance of paying tax which you are due to pay. Tax evasion can bring legal sanctions.

Paying less tax.

Gibson Kerr offer a specialist tax planning and financial advice service which can help you minimise your tax bill. The UK tax system is complex and ever changing. We offer advice on Income tax, Capital Gains Tax (CGT), Value-added Tax (VAT), Inheritance Tax (IHT), tax planning and advice on how and when payments and returns are due.

What is Income tax?

Income tax is tax which arises on your income from work, as the name suggests. However, not all income is taxable and you can claim reliefs on certain types of income. Income tax is only payable on what you earn from:

• employment

• self-employment

• certain pensions eg: State, company and personal pensions

• interest from savings

• income from certain investments

There are certain types of income on which you never pay tax, and certain reliefs you can claim on you income tax bill. For instance, there is a relief available to married couples.

In addition, you only pay tax on income over a certain level. For the tax year 2012/2013 the tax-free allowance on income is £8,105.

For more advice on income tax planning, contact our Edinburgh tax solicitors on 0131 208 2260.

What is Capital Gains Tax?

Capital gains tax is the tax which becomes payable when you sell, gift, exchange or transfer an asset. The tax is payable on the 'gain' you make, not the amount you receive in exchange for the item.

Some assets are exempt from CGT such as personal effects under £6000, your car and normally your home.

There is an annual allowance known as the 'annual exempt amount'. For the tax year 2012/2013 the annual allowance is £10,600.

For more advice on income tax planning, contact our Edinburgh tax solicitors on 0131 208 2260.

Financial and tax planning Edinburgh.

Our financial and tax solicitors can also offer advice on

• Savings and investments

• Health and later life care.

• Insurance

• Trusts

• Mortgages

• Retirement planning

Contact our Edinburgh solicitors

For further information on financial planning or tax planning, contact our Edinburgh Solicitors by clicking here or calling us on 0131 208 2260.