Tax is an unpopular subject for most of us and it is easy to see why: from every hard earned pound we make, the Government takes a tax bite. And it is not just our annual income which takes a tax hit. The Tax Man also gets a slice when we buy a house, gain an inheritance or even just buy a glass of wine in the local pub.

Prudent tax planning can help us avoid paying more than we need to, by means of, for example, tax incentives on investment vehicles such as venture capital trusts. But even the most financially savvy can find tax rules complicated and annual Government tax changes make it still harder to keep on top of. Expert guidance from an independent financial adviser (IFA) is a way of ensuring you do not pay tax over the odds.

One important area is inheritance tax (IHT). If not planned for, it is all too easy to miss out on inheritance through tax, or even for our families to miss out later down the line. IHT levels finally look set to increase in line with inflation; however recent property price rises may mean many still find themselves over the tax limit, making it more important than ever to seek IHT advice.

Making the most of allowances and tax credits, such as capital gains tax and child tax credits, is another vital element of tax planning, although many of us fail to take advantage. Of course there are conditions and exemptions to the rule as with all areas of tax, but it is well worth checking what you are entitled to.

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