 tax questions. But this week, to mark the relaunch of Telegraph Money , I wanted to give you six easy tax-cutting tips to take away with you. Consider Bob, his wife Sally and their three children. Bob runs his own company in which Sally has some shares. He is a higher-rate, 40pc taxpayer. They have a £200,000 mortgage which recently moved to a variable interest rate of 7.5pc which Bob would ideally like to pay off. Bob has owned an investment property for 10 years which he bought for £200,000 using a £150,000 mortgage on which he is paying a mortgage at 8.5pc. He has some listed shares that are currently in profit that he would like to keep. Ten years ago he invested in a 'single premium' insurance policy which he has not drawn on but which he would now like to realise. It is worth £50,000 and is currently showing a profit of £15,000. Sally is not currently working while she brings up the children. She also helps to care for Mavis, her elderly widowed mother. So, what choices does this family have to improve their tax position? 1. Use 'bed and spouse' The annual capital gains tax allowance is currently £6,000 but falls to just £3,000 from next April. Bob's shares are showing a profit and it could make sense to take full advantage of the allowance this year. Ideally he would like to sell shares and buy them back again to raise the CGT 'base cost' against future disposals. Capital gains tax calculator Unfortunately the so-called 'bed and breakfast' rule prevents this working if you buy the shares back again within 30 days. However, there is nothing to stop Bob selling shares and Sally buying shares in the same company on the same day as long as it is done through the stock market rather than){kind=link}
Your Tax Adviser reveals straightforward measures to reduce your tax bill
The Government is keen to take our hard-earned money and has plenty of plans for spending it – but so do we. In my view, there is absolutely nothing wrong with utilising straightforward measures to reduce your tax bill.
Usually in my weekly column I answer your (always very good) tax questions. But this week, to mark the relaunch of Telegraph Money, I wanted to give you six easy tax-cutting tips to take away with you.
Consider Bob, his wife Sally and their three children. Bob runs his own company in which Sally has some shares. He is a higher-rate, 40pc taxpayer. They have a £200,000 mortgage which recently moved to a variable interest rate of 7.5pc which Bob would ideally like to pay off.
Bob has owned an investment property for 10 years which he bought for £200,000 using a £150,000 mortgage on which he is paying a mortgage at 8.5pc. He has some listed shares that are currently in profit that he would like to keep.