Tax Planning Services

Smart tax planning helps you keep more of what you earn and pass on more to your family—while staying fully compliant. We give clear, practical advice across inheritance tax, trusts, international (non-dom/FIG) rules, and choosing between sole trader and limited company.

Inheritance Tax (IHT) Planning

  • Core thresholds: The standard nil-rate band is £325,000. A separate residence nil-rate band is £175,000 when a home passes to direct descendants; it tapers away by £1 for every £2 that an estate exceeds £2 million. Unused nil-rate bands can be transferable between spouses/civil partners.

  • Reduced rate for charity: Leave 10% or more of your net estate to charity and IHT on qualifying assets can drop from 40% to 36%.

  • Freezes confirmed: Current IHT thresholds (nil-rate band, residence nil-rate band and the £2m taper threshold) are fixed until at least 2029–30.

  • Lifetime gifts: Gifts are usually outside IHT if you survive 7 years. If death occurs within 7 years, taper relief can apply to gifts made 3–7 years before death. (Special rules apply to gifts into trust.)

How we help: Will reviews, spouse/RNRB optimisation, structuring charitable legacies, life policy trusts to cover any residual IHT, and record-keeping for gifts.

Trusts: Control, Protection and Tax

  • Registration: Many UK and non-UK trusts must register on HMRC’s Trust Registration Service (TRS)—either to comply with anti-money-laundering rules or when the trust becomes liable to UK tax. We handle the whole process.

  • Income tax for trusts: Most trusts have a £500 de minimis income threshold. Above that, trustees pay income tax at 45% (most income) and 39.35% on dividends. Trustees do not get the personal dividend allowance.

  • IHT on trusts: Relevant property trusts can face periodic (10-year) charges and exit charges, each capped at 6%. Certain lifetime transfers into trust above the available nil-rate band can trigger a 20% entry charge. We model these before you commit.

How we help: Choosing the right trust, TRS registration, tax returns for trusts/beneficiaries, and long-term planning around 10-year/exit charges.

Non-Domiciled Status → the new FIG regime (from 6 April 2025)

The non-dom remittance basis has been abolished. From 6 April 2025, the UK uses a residence-based system with a 4-year Foreign Income & Gains (FIG) regime for qualifying new arrivals (after 10 consecutive non-resident years). Within the FIG window, foreign income and gains are fully relieved from UK tax (claim required).

  • Overseas Workday Relief (OWR): Reformed from 6 April 2025—see HMRC’s updated guidance for eligibility and administration. We coordinate payroll and claims.

  • Temporary Repatriation Facility (TRF): Former remittance-basis users may be able to bring pre-6 April 2025 foreign income/gains to the UK at 12% (2025/26–2026/27) or 15% (2027/28).

  • IHT scope (residence-based): From 6 April 2025, long-term UK residents can bring overseas assets into the IHT net on transfers/death (worldwide coverage once “long-term resident” criteria are met). Planning may be needed around timing and asset location.

How we help: FIG eligibility checks, OWR setup, TRF calculations, and estate/trust reviews under the new residence-based IHT rules.

Sole Trader vs Limited Company

Choosing a structure affects how much tax/NIC you pay and when:

Sole trader (self-employed)

  • Profits are taxed on you personally at Income Tax rates, and you pay Class 4 NIC at 6% (between £12,570 and £50,270) and 2% above that (2025/26). Class 2 is treated as paid for state pension purposes if your profits exceed the Small Profits Threshold.

Limited company

  • The company pays Corporation Tax: 19% on small profits (up to £50,000), 25% at £250,000+, with marginal relief in between.

  • You then extract funds (salary/dividends). Dividend tax applies only above the £500 dividend allowance; rates are 8.75% / 33.75% / 39.35% by band. (Allowance and rates confirmed for 2025/26.)

  • Selling a business/shares: Qualifying disposals can attract Business Asset Disposal Relief (BADR) at 14% from 2025/26 (10% up to 5 April 2025), lifetime limit £1m.

How we help: Side-by-side tax/NIC modelling for your expected profit level, optimal split of salary/dividends, pension planning, and BADR eligibility checks ahead of an exit.