HIGHER RATE TAX PAYERS GIFT THE TAXMAN
-Visit an IFA and become more tax savvy-
Over half of the
Continuing its war on wasted tax, IFA Promotion has extended its tenth annual TaxAction research to look at high net worth individuals and can reveal that they throw away over 390 million though mis-calculating tax payments and a further 1.8 billion by not taking advantage of tax breaks.
The worst areas for waste are capital gains tax, where at least 28 million is lost through calculation errors, self assessment forms, where 90% of high net worth individuals lose money because they dont complete the form correctly and through inheritance tax, where a tax bill of 1 billion could be avoided.
David Elms, Chief Executive of IFA Promotion comments, Nearly one in eight adults in the
We are encouraging people to visit their local independent financial adviser and become more tax savvy with their finances. IFAs can advise on a wide range of tax issues from capital gains to inheritance. High net worth individuals and those with lesser means, could find they make considerable savings by visiting an IFA.
Tips on reducing tax:
IF YOU HAVE ASSETS OVER 250,000: Plan your inheritance an extra 1,017 million could go to chosen heirs by planning properly to avoid inheritance tax liabilities. This is lost through not writing life assurance policies in trust, not thinking about inheritance tax allowances and, worst of all, by not making a will at all!
IF YOU HAVE CAPITAL GAINS: Use your allowance efficiently, perhaps by transferring assets between spouses to make the most of the lower rate taxpayer - 290 million could be saved in this way.
IF YOU FILL IN A TAX RETURN: Sort out your self-assessment 329 million waste could be wiped out by all forms arriving present and correct by the 31st January deadline. In 2001 the 808,000 people whose self-assessment forms were received after the deadline incurred a penalty of 100; further penalties and errors made up the balance of tax wasted in this way.
To help people take control of their finances, IFA Promotion is offering a FREE guide to tax-efficiency. For your copy and details of four local IFAs, call the hotline on 0800 085 3250 or visit www.unbiased.co.uk
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For further information, please contact:
David Elms Liz Willder / Richard Winder
CEO
IFA Promotion Lansons Communications
020 7833 3131 020 7294 3677
david@ifap.org lizw@lansons.com / richardw@lansons.com
* There are approximately 5.9 million individuals with personal wealth in excess of 100,000. This group represents approximately 12.6% of the population, although they are responsible for the ownership of nearly 60% of the countrys wealth
** Wasted Tax 2002 was produced for IFA Promotion by Mintel and RAKM and is partly based on a specially commissioned analysis of Inland Revenue data.
Notes to Editors:
1. Independent Financial Adviser Promotion
IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents over 10,000 firms of independent financial advisers across the
IFA Promotions believes Independent financial advice should be:
Affordable. The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.
Convenient. IFAs should be available in the location of the consumers choice, wherever they live in the
Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.
2. Independent Financial Adviser Promotions sponsors
AMP NPI | Prudential |
AXA Sun Life | Scottish Equitable Plc |
Barclays Global Investors Funds | Scottish Life |
Bright Grey | Scottish Mutual Assurance Plc |
BUPA | Scottish Provident Institution |
Scottish Widows Plc | |
Clerical Medical Investment Group | Selestia |
Eagle Star | Standard Life Assurance Company |
Friends Provident | Swiss Life ( |
GE Life | The Skandia Group of Companies |
INVESCO Fund Managers Ltd | Tunbridge Wells Equitable Friendly Society |
Legal & General | Winterthur Life UK Ltd |
National Savings & Investments | Zurich Life Assurance Company |
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