Tax optimisation in the transfer of assets and income

Transferring assets and income within a family – that’s not just possible in Succession scenarios not only be sensible, but also to to reduce the tax burden. This is done under Making the most of and optimising statutory allowances and the Progressive taxation. Our solicitors, specialist solicitors and tax advisers are experts in Tax optimisation within the family and advise you on how to turn your ideas into the best possible result.

Good opportunities with a high level of care

The opportunity for tax optimisation is particularly available to business owners with children. By strategically transferring company shares within the limits of the gift tax allowances, profits can subsequently be distributed amongst several family members. As a result, multiple basic allowances can be utilised and, furthermore, the effects of progressive taxation can be mitigated.

Further opportunities for income shifting arise in connection with letting and leasing to family members or children, the transfer of capital assets, employment contracts and loan arrangements within the family.

Given the close relationship between the contracting parties, which is inherent in a family, the tax authorities assume that there is no inherent conflict of interest. Consequently, they impose stricter requirements for the tax recognition of contracts within the family.

Contracts between close relatives therefore require particular legal care to ensure they are recognised for tax purposes, and must also be actually implemented. However, despite the tax authorities’ stringent requirements, there remains considerable scope for tax optimisation within a family group, provided the necessary legal care is taken.