TAX PLANNING PERSPECTIVES

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TAX PLANNING PERSPECTIVES
Theory and Practice of Taxation C Year
2006-07 Lec10
Given a set of circumstances or a situation
where a decision is to be made which involves the
incidence of taxation, then tax planning is
concerned with achieving the best result with
respect to that decision from the taxation
perspective. Rowes, P. 1996. Taxation. DP
Publications
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Introduction to tax planning - a definition
- Given a set of circumstances or a situation
where a decision is to be made which involves
the incidence of taxation, then tax planning is
concerned with achieving the best results with
respect to that decision from the taxation
perspective. The best result is usually taken
to mean achieving the least amount of tax
payable consistent with any cash flow advantage
which are also often important.
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Tax planning - objectives individuals
- Tax planning objectives for individuals may be
summarised as follows To reduce taxable
income and / or chargeable gains falling to be
assessed. To lower the rate of tax which is
applicable to taxable income or taxable gains.
To defer the date on which tax becomes payable,
thereby gaining a cash flow / interest advantage.
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TAX PLANNING PERSPECTIVES INCOME TAX
WHAT IS INCOME TAX FREE SOURCES ALLOWANCES
AND RELIEFS PENSION PLANNING REMUNERATION
PACKAGES INTER SPOUSE EQUALISATION CHOICE OF
BUSINESS MEDIUM CHOICE OF ACCOUNTING DATE -
SOLE TRADERS PARTNERSHIPS
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A TAX PLANNING PERSPECTIVE CAPITAL GAINS TAX
The events giving rise to a capital gains tax
charge. The amount chargeable to capital gains
tax. The rates of capital gains
tax. Exemptions and reliefs. Whether phasing
of disposals is advantageous.
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A TAX PLANNING PERSPECTIVE CAPITAL GAINS TAX
RELIEFS
Annual exemptions. Rollover
relief. Reinvestment relief. Holdover
relief. Phasing disposals. Inter-spouse
transfers. Exempt assets.
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A TAX PLANNING PERSPECTIVE INHERITANCE TAX
The events giving rise to an inheritance tax
charge. The amount chargeable to inheritance
tax. The rates of inheritance tax. Exemptions
and reliefs. Whether phasing of transfers is
advantageous. The advantages / disadvantages of
lifetime transfers as compared to transfers on
death.
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A TAX PLANNING PERSPECTIVE INHERITANCE TAX RELIEFS
Annual exemptions. Potentially Exempt
Transfers. Business Property Relief. Agricultu
ral Property Relief. Exempt beneficiaries. Exe
mpt assets.