There are many ways to reduce tax liabilities, apart from the obvious one of claiming all allowable expenses. For example, you may consider choosing a particular type of business structure, different forms of borrowing or investment, taking advantage of the tax relief available on personal pension plans, or even moving abroad to achieve non-resident status.

Capital gains tax and inheritance tax are extremely complex and require careful planning. For example, if a profit results from selling an asset that is not part of the trading stock of a business, there may be a capital gains tax (CGT) liability. If you run a business from home the exemption from CGT, which private houses normally have, could be prejudiced if you seek income tax relief on part of the running cost of the house. ICAEW Chartered Accountants are well qualified to provide expert professional advice on the subject.