How individuals can minimise tax liabilities.

Make use of tax allowances and reliefs:

• Tax allowances and reliefs can help reduce the amount of tax individuals have to pay. These include the Personal Allowance, age-related allowances, Marriage Allowance, and blind person’s allowance.

Claim expenses:

• Individuals can claim allowable expenses against their income, such as business expenses, travel expenses, and other work-related costs. This can help reduce the amount of tax an individual pays.

Make use of ISAs:

• Individuals can save up to £20,000 a year into a tax-free Individual Savings Account (ISA). This can help an individual save money on taxes and earn interest on their savings.

Invest in pensions:

• Contributing to a pension is an effective way to reduce an individual’s tax liabilities. Pension contributions are usually made from pre-tax income, and the government provides tax relief on pension contributions up to certain limits.

Make charitable donations:

• Making charitable donations can help reduce an individual’s tax liability. Donations to charities are tax-deductible, meaning that individuals can claim back the tax they’ve paid on their donations.

Make use of tax-efficient investments:

• Certain types of investments, such as Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCTs) are exempt from capital gains tax. This means that any gains made from these investments are not subject to tax.