Make the most of your tax allowances, review tax planning opportunities and get your tax return submitted early.
A new Tax Year brings a second chance to make New Year resolutions…………
This tax year (2018/19), why not resolve to make the most of your tax allowances, review any tax planning opportunities, and get your tax return submitted early.
Some ideas to help you achieve this include:
- Transfer income producing assets to the lower earning spouse to utilise their personal allowance and lower tax bands. The earlier you do this, the bigger the benefit.
- Use your capital gains annual exemption of £11,700 – it can’t be carried forward.
- Maximise your pension savings annual allowance of £40,000 and remember that you can carry forward unused pension annual allowances for up to three years. Beware of the new restrictions for people earning over £150,000 which can reduce your allowance down to a minimum of £10,000.
- Make use of the Inheritance Tax gift exemptions of £3,000 a year.
- Maximise your ISA allowance of £20,000. Income and gains within your ISA are tax free.
- Consider investments into enterprise investment scheme (EIS) or venture capital trust (VCT) companies to benefit from 30% income tax relief, and capital gains tax deferrals on EIS investments.
- Make charitable donations under Gift Aid to benefit from tax reliefs and increase the amount the charity receives. If you make these before filing your 2017/18 return you can carry them back to that year.
If you wish to discuss how we can help you to maximise your tax efficiency – call us today on 01273 739592.