Effective tax planning helps you keep more of what you earn. Whether you are employed, self-employed, retired, or running your own business, structuring your finances with care can have a significant impact. At integra, we believe tax planning is not just about saving money today—it’s about building a more secure future.
Good planning helps you avoid unnecessary costs and gives you greater control over your financial future. From reducing tax bills to preparing for the next generation, the benefits are far-reaching.
Why Tax Planning Matters
Tax is a certainty in life, but how much you pay can vary depending on how your finances are arranged. Tax planning allows you to take control. From reducing your income tax bill to managing capital gains and inheritance tax, the goal is simple: make your finances as tax-efficient as possible.
Without planning, you could miss valuable allowances, overpay tax, or face avoidable charges. With the right advice, you can make full use of available reliefs and exemptions.
Understanding Your Allowances
In the UK, everyone benefits from annual tax allowances. These include the personal income tax allowance, the capital gains tax exemption, and ISA limits. They may seem simple, but without thoughtful planning, many go unused.
Married couples and civil partners can often transfer income-producing assets to reduce overall tax. Fully using your ISA allowance each year helps shield your investments from both income and capital gains tax. You may also benefit from the dividend and savings allowances, which vary depending on your income.
Importantly, it’s worth considering the inheritance tax (IHT) nil rate bands. The standard nil rate band is currently £325,000 per individual. A further £175,000 may be available under the residence nil rate band if a main residence is passed to direct descendants. These bands can significantly reduce the IHT bill when planning early.
All these elements form part of a wider tax strategy—one that not only reduces today’s tax burden but protects long-term wealth too.
The Value of Independent Advice
Tax rules are complex and ever-changing. It’s not just about what allowances exist, but how they apply to your personal situation.
A financial adviser will take time to understand your wider circumstances. Your income, assets, family and goals all shape the plan. With tailored advice, you can build a tax-efficient strategy that supports your financial future. We also work alongside your accountant or solicitor to make sure your tax planning is fully aligned—especially in areas like inheritance or business ownership.
Planning for More Complex Situations
If you’re a higher-rate taxpayer, business owner, or someone with significant assets, your tax strategy may need additional layers.
The government offers tax-efficient investment schemes designed to support UK business growth. In turn, these schemes offer attractive incentives.
Venture Capital Trusts (VCTs) invest in a range of early-stage UK businesses. You can claim 30% income tax relief on investments up to £200,000 each tax year. Plus, you enjoy tax-free dividends and no capital gains tax on any profits.
Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Schemes (SEIS) go even further. EIS offers 30% income tax relief, capital gains deferral, and loss relief if the business fails. SEIS—aimed at newer companies—offers 50% income tax relief on investments up to £100,000.
These options carry risk and are not suitable for everyone. However, with the right planning, they can be a powerful part of a broader tax strategy.
Business Relief (BR) (previously known as Business Property Relief) is another important IHT planning tool. If you own qualifying business assets—such as shares in an unlisted company—and hold them for at least two years, they may be exempt from IHT. This can enable efficient wealth transfer without triggering a 40% tax charge.
Trust-Based Planning: PETs and CLTs
At integra, we often support clients using gifting strategies through trusts.
Potentially Exempt Transfers (PETs) allow individuals to gift assets directly. If the person making the gift survives for seven years, the gift becomes exempt from IHT.
Chargeable Lifetime Transfers (CLTs), often made into discretionary trusts, may incur a charge if they exceed the nil rate band. However, they are effective for long-term estate planning, particularly when used alongside other strategies.
Both PETs and CLTs require careful timing and structuring, but they can significantly reduce the value of an estate and the eventual IHT due.
Start Your Tax Planning Conversation Today
Tax planning is not about avoiding tax—it’s about paying what is fair, staying compliant, and using every opportunity available. Whether you’re planning for your own future or thinking about the next generation, good advice gives you clarity and confidence.
At integra, we offer independent, regulated financial advice tailored to your situation. Contact us today to start the conversation.
