Basic taxation

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14. Conclusion

If your finances are complex, involving substantial capital sums and intricate legal trusts, you should have your tax position managed by a professional accountant or solicitor.

But if your finances are not complex, there are a number of straightforward steps you can take to minimise your liability to income and capital gains tax.

The important steps are:

• Contribute to a pension plan
• Invest in ISAs and/or Fixed Interest Savings Certificates
• Use your annual CGT exemptions
• Spread your wealth between you and your spouse to minimise the income and CGT burden
• Consider giving away £3,000 each year to your children
• Consider giving away larger amounts nearer (but not too near) the end of your life

As with all types of planning, the earlier you put things in place the better.

You have now completed the course. To test your knowledge, take the Assessment test.

1. Your tax breaks courtesy of the government 2. Keep it legal 3. Income tax - first principles 4. Income tax - keeping it in the family 5. Capital gains tax (CGT) 6. How to avoid CGT on your share portfolio 7. Inheritance tax (IHT) planning 8. The most popular tax efficient investments 9. The tax treatment of collective funds 10. Tax efficient but may be very risky 11. Self assessment - who needs it? 12. Self assessment - key dates 13. Do you need an adviser? 14. Conclusion