Tax planning for the elderly
Produced in partnership with Sophie Fenn of The Wilkes Partnership Solicitors
Tax planning for the elderly

The following Private Client guidance note Produced in partnership with Sophie Fenn of The Wilkes Partnership Solicitors provides comprehensive and up to date legal information covering:

  • Tax planning for the elderly
  • Income equalisation and use of personal allowances
  • Equalisation of capital gains
  • Lifetime giving and exemptions
  • Charitable giving/philanthropy
  • Tax planning by Will
  • Business Property Relief (BPR) and Agricultural Property Relief (APR)

Individuals may find themselves liable to pay income tax and capital gains tax during their lifetime. On death their estate may be liable to inheritance tax. Efficient tax planning during lifetime and in a will can reduce the potential for such taxes.

The issues raised apply to adults at any stage of life but are perhaps of more concern to the elderly, or those who have retired and are able to make plans with a regular pension income. For reliefs and exemptions to be claimed after death, the adviser’s role is to see that suitable documentation and record keeping is put in place during lifetime to make such claims possible on death. Furthermore, such record keeping will assist in the event that clients become mentally incapacitated prior to their death.

References to spouses include civil partners.

Income equalisation and use of personal allowances

Individuals have a personal allowance, adjusted annually, above which income tax is due. For spouses with an imbalance in their income, savings could be spread between them so that each personal allowance and lower rate of tax is used.

For example, if the taxable income of one spouse is below the personal allowance, income generating savings assets could be placed into their name to use the remaining part of their personal allowance rather than that income being charged at the