Making School Fees Less Taxing
Tax relief is not available on school fees directly, but as Independent Advisers we are able to offer our clients many opportunities to reduce and reclaim tax.
Higher Tax Rate Strategies
SFIA have proven strategies to reduce or recover income, capital gains and inheritance tax, the proceeds of which can be put into your school fees plan.
Provided you earn sufficient higher rate tax, we are able to fully recover £10,000 of tax paid year on year (up to 3 years prior) or save £10,000 of tax paid this year, to invest in an HMRC approved scheme that will return your investment and interest within 6 years. For higher earners there are investment plans that would be even more beneficial. Contact us for further information.
Investments
Investments and deposits can often be invested in assets which do not produce any taxable income, or that produce income which is partially exempt from tax. In this way, it is possible to reduce taxable income considerably and therefore the total tax bill.
Investment strategies can be structured to take greater advantage of the favourable tax position of investments that are mainly subject to capital gains tax rather than income tax.
School Fees Pension Plan
For those that qualify, our School Fees Pension Plan is the most tax efficient option. By extending the time you pay your school fees, you may, frequently without any extra monthly cost, build up a substantially greater pension fund and pay off your fees. The additional tax relief gained can often be more than the original school fees! read more
Trust Planning
Where capital has been provided by a grandparent, any income credited to the trust is treated as the child's income. Each child is entitled to their own personal pre-tax income allowance. Similarly capital gains arising are also treated as the child's and therefore each child's annual capital gains exemption can be applied.
Making School Fees Less Taxing
Tax relief is not available on school fees directly, but as Independent Advisers we are able to offer our clients many opportunities to reduce and reclaim tax.
Higher Tax Rate Strategies
SFIA have proven strategies to reduce or recover income, capital gains and inheritance tax, the proceeds of which can be put into your school fees plan.
Provided you earn sufficient higher rate tax, we are able to fully recover £10,000 of tax paid year on year (up to 3 years prior) or save £10,000 of tax paid this year, to invest in an HMRC approved scheme that will return your investment and interest within 6 years. For higher earners there are investment plans that would be even more beneficial. Contact us for further information.
Investments
Investments and deposits can often be invested in assets which do not produce any taxable income, or that produce income which is partially exempt from tax. In this way, it is possible to reduce taxable income considerably and therefore the total tax bill.
Investment strategies can be structured to take greater advantage of the favourable tax position of investments that are mainly subject to capital gains tax rather than income tax.
School Fees Pension Plan
For those that qualify, our School Fees Pension Plan is the most tax efficient option. By extending the time you pay your school fees, you may, frequently without any extra monthly cost, build up a substantially greater pension fund and pay off your fees. The additional tax relief gained can often be more than the original school fees! read more
Trust Planning
Where capital has been provided by a grandparent, any income credited to the trust is treated as the child's income. Each child is entitled to their own personal pre-tax income allowance. Similarly capital gains arising are also treated as the child's and therefore each child's annual capital gains exemption can be applied.