Tax Breaks
Five powerful Tax Breaks every month. See how much they could save you

June 2009

  • Home-free, but only if you make an election
    When times were good you bought a little bolthole in the country. It's great for long weekends and family holidays. Sadly, property values have taken a hit recently, but you don't intend selling yet, and in the long run you still expect to make a decent gain. Unfortunately, the Taxman will want his share in Capital Gains Tax when you sell. What can you do now to save tax later?
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  • Tax saving with kids, pensions and IHT
    One of the problems with passing your wealth on to the next generation is Inheritance Tax. If you give it away to your children but don't survive seven years, the Taxman will treat the gift as if it were still part of your estate. And if you make the gift into a trust there are also potential tax charges. But could pension funds provide a solution?
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  • A key incentive for key employees
    You want to hang on to a key member of staff by giving them shares in the company. But it will land them with a big tax bill, so that's not such a great incentive. You could pay the tax for them, but that makes the plan very expensive. Is there a way to achieve your goal without such a massive hit from the Taxman?
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  • A capital idea for company cars
    You can reduce the amount of tax you pay on your company car by making a contribution towards its purchase. In the short term that might look like a good idea, but when the car is sold you could end up out of pocket to the Taxman. However, there's a neat way of using a company loan to avoid this problem and still save tax.
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  • Furnish yourself with a VAT saving
    A business can only reclaim VAT on the purchase of items it uses in its business. The Taxman says that buying an asset, such as a sofa or TV, for personal use by a director doesn't qualify. But if your company charges you a nominal rent for using the asset, will the arrangement now be part of its business and so allow it to reclaim the VAT?
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Tax Breaks Directory

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