Tax Planning & Inheritance Tax (IHT) Advice in Hertfordshire
Proactive tax planning is one of the most valuable things a good accountant can do for you. The difference between a reactive accountant — one who simply files what happened — and a proactive one who structures your affairs efficiently can be worth thousands of pounds every year. At CoreAcc, tax planning sits at the heart of what we do for our clients.
From structuring remuneration for directors to protecting generational wealth through robust Inheritance Tax planning, our Chartered Certified Accountants provide tailored, forward-thinking tax advice to business owners, entrepreneurs, and high-net-worth individuals across Hertfordshire and North London.
Corporation Tax Planning for Limited Companies
Limited companies face a Corporation Tax rate of up to 25% on profits. Legitimate tax planning can significantly reduce this liability:
- ✓Year-end tax planning — timing of expenditure, asset purchases, and pension contributions
- ✓R&D tax credit claims for qualifying innovation and development activities
- ✓Capital allowances — Annual Investment Allowance (AIA), first-year allowances, and full expensing on qualifying plant and machinery
- ✓Director loan account planning and management to avoid Section 455 tax charges
- ✓Group relief and loss planning for businesses with multiple entities
- ✓Share scheme implementation (EMI, CSOP, SAYE) to incentivise and retain key employees tax-efficiently
- ✓Holding company and group structure review for businesses with multiple activities or properties
Personal Tax Planning
For directors and business owners, the line between personal and business tax is inseparable — the decisions you make in your company directly impact your personal tax position. We help you:
- ✓Determine the most tax-efficient salary and dividend combination each year, taking into account current income tax rates and National Insurance thresholds
- ✓Make the most of your personal allowance, basic rate band, and dividend allowance
- ✓Plan pension contributions to reduce both personal and corporate tax liabilities
- ✓Manage capital gains timing — identifying when to dispose of assets to make use of annual exemptions
- ✓Use ISA allowances, EIS, SEIS, and VCT investments for income tax and CGT relief
- ✓Advise on the tax implications of earning over £100,000 (personal allowance tapering and effective 60% tax rate)
Inheritance Tax (IHT) Planning
Inheritance Tax in the UK is charged at 40% on estates above the nil-rate band (currently £325,000, with an additional £175,000 residence nil-rate band available in many cases). For business owners with valuable companies or property portfolios, careful planning is essential to ensure your wealth passes to the next generation — not to HMRC.
Our IHT planning services include:
- ✓Estate valuation and calculation of potential IHT liability
- ✓Business Property Relief (BPR) — many trading business interests qualify for 100% IHT relief after two years' ownership
- ✓Agricultural Property Relief (APR) for farming businesses and rural land
- ✓Lifetime gifting strategies, including Potentially Exempt Transfers (PETs) and use of annual gift exemptions
- ✓Trust planning — discretionary trusts, family investment companies (FICs), and other structures to protect and transfer wealth
- ✓Will planning coordination (working alongside your solicitor to ensure your will and business structure are aligned)
- ✓IHT-efficient pension planning — pensions are generally outside the estate for IHT purposes and can be a powerful planning tool
Exit & Succession Planning
Whether you plan to sell your business, hand it to the next generation, or bring in a management buyout team, the tax implications of getting your exit wrong can be devastating. We advise on:
- ✓Entrepreneurs' Relief (now Business Asset Disposal Relief) — and the conditions required to qualify for the 10% CGT rate
- ✓Business structuring in advance of a sale to maximise relief eligibility
- ✓Share reorganisations, demergers, and holdco structures as part of exit preparation
- ✓Employee Ownership Trusts (EOTs) — a highly tax-efficient exit route that is exempt from CGT
Frequently Asked Questions
How much can I inherit tax-free?
The standard IHT nil-rate band is £325,000 per person. Married couples and civil partners can transfer unused nil-rate band to each other, effectively doubling this to £650,000. Where a main residence is passed to direct descendants, an additional Residence Nil-Rate Band of up to £175,000 per person (£350,000 for couples) may apply — taking the combined threshold to £1 million in the right circumstances.
Is my business exempt from Inheritance Tax?
Potentially, yes. Trading businesses and interests in trading companies may qualify for Business Property Relief at either 50% or 100% — which can dramatically reduce or eliminate IHT on business assets. However, the rules are complex and depend on the nature of your business, how long you've held the assets, and how the business is structured. We can assess your position and advise on steps to protect your entitlement.
When should I start tax planning?
The honest answer is: as soon as possible. Many of the most effective IHT planning strategies require time to work — PET gifts only become fully exempt after seven years, and some trust structures need to be in place well before they are needed. For corporation tax and personal tax, proactive planning before your year-end is essential. We recommend a mid-year tax review for all our business clients.
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