Anyone can become a multi-millionaire

kingrulzuk wrote: »

[/SIZE][/FONT]Is there any loophole to avoid paying tax?

Buy To Let had a golden age.

The mortgage interest is deductible against rental income, so if you were in the 40% tax bracket, that was how much you saved.
When it comes to sell, you pay 28% on capital gains, not 40%, like on "earned" income.

It all seems rather unfair, really. If your "earn" it, you get taxed at 40%, but if you just buy something, then sell it, you pay 28%.
But then, higher rate CGT is now 20%, for non-property gains.
So the tax regime is rewarding people with money.

Oh dear, did I start another communist revolution? Oops. :eek:

kingrulzuk wrote: »

im not in the higher tax bracket as I only earn between 32k and 35k a year, but I pay a lot of tax, NI and council tax which im not happy about.
and im trying my best to find ways to avoid paying this

The government offers various tax breaks to incentivise people to do what it would like them to do, particularly around investments.

So, you can be in a position where you have a decent amount of savings and an even larger amount of shares or dividend-producing investment funds without paying tax on the income and/or on a reasonable amount of investment gains each year. And to encourage people to invest for their futures, the government offers tax wrappers such as ISAs and pensions to allow people to avoid or defer tax which they would otherwise have had to pay.

To pay low effective rates of tax, maximise all your allowances. If you don't like paying NI, ask if you can receive a larger pension contribution or a company car instead of cash in your bank account. If you don't like paying income tax, put the money in a pension or VCT or give it away to charity rather than receiving and spending it.

Nobody likes paying tax, but if there is an option to avoid it (eg by putting decent amounts of your income into a pension) and you say you don't want to do something like that, then it is your fault that you're not getting the tax reduction, not ours.

For council tax, you can reduce it by living on your own (single occupancy discount) or living with multiple other people (splitting the fixed cost multiple ways). For road tax, you can drive a car with smaller engine or one with lower pollution. For tobacco or alcohol or fuel duty, or vat or customs duty, simply consume less.

The table here might give some insight as to which taxes have relief available.

http://taxsimplificationblog.wordpress.com/2015/03/27/finance-act-2015-new-tax-reliefs/