Making use of UK tax reliefs while you can

The Chancellor, George Osborne, has tasked OTS with identifying reliefs that should be simplified or removed to create a simpler system of taxation in the UK. All findings that come out of the OTS review would be put before Parliament as part of the Finance Bill. No changes to individual reliefs have been made at this time.

To start their review, the OTS has compiled a list of all the current reliefs. Reliefs include specific deductions, allowances and tax-free amounts, exemptions, reductions in tax, tax credits, zero rates of tax, reduced rates of tax and double taxation reliefs.

Many tax changes proposed in the Finance Bill (and included in the eventual Finance Act) take effect from the start of the fiscal year. With this review taking shape to fit with the Finance Bill process, it has become even more important to ensure that your clients understand and utilise all relevant reliefs available to them, as there is no certainty that such reliefs will remain in the future.

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• UK inheritance tax - exemptions and reliefs for gifts
• Reducing IHT by making regular gifts out of income

And for reliefs relating to income tax in respect of offshore investment bonds, see our articles:

• UK taxation of offshore bonds Part II Tax and reliefs
• What is deficiency relief?
• UK taxation - Chargeable events and the interaction with time apportionment relief

For Financial Advisers with international investors that have UK tax liabilities, an overview of double taxation agreements is shown in the following article:

• Tax Information Exchange Agreements and Double Taxation Arrangements

These articles aim to give an understanding of the UK tax reliefs most relevant to Skandia International investors, however, there are many other reliefs which may be relevant to your clients based on their individual circumstances. Further details about other UK tax reliefs can be found on HM Revenue and Customs’ website: www.hmrc.gov.uk.