Over the next few months, Jane Platt a partner in Howard Worth & Co, Chartered Accountants based in Northwich, sets out how the tax regime affects peoples' every day lives, starting with the family.

The main points to bear in mind is that every member of your family is taxed as an individual and entitled to his or her own allowances and exemptions.

For 1998/9:

The first £4,195 of income is tax free

The next £4,300 is taxed at 20%

The £22,800 is taxed at 20% of savings income, 23% for other income

The remainder is taxed at 40%

The first £6,800 of capital gains are tax free

The remainder is taxed at non-savings income tax rate

The basic married couples' allowance is normally given to the husband, but can be given to either spouse or divided equally.

In theory it is possible for a couple with two children to enjoy tax free income and gains of £43,980 by using a combination of basic allowances and capital gains tax exemptions.

The golden rules for basic tax planning for the family are to make the most of tax free opportunities, keep marginal tax rates as low as possible and maintain a spread between income and capital

Make sure as many members of your family as possible take advantage of the annual exemptions.

This is not intended to be a substitute for professional advice. The best way to use it is to identify the areas which could apply to you and then call Jane to arrange a no obligation interview. Her number is 01606 75338.

Converted for the new archive on 13 March 2001. Some images and formatting may have been lost in the conversion.