End of Year Tax Tips

Planning for the end of a Tax Year can often be overlooked during periods of extreme volatility in stock markets, but this should not be the case.

Many Tax allowances are now of the “use it or lose it” variety so although you may think us a little premature, giving you these tips in January, all planning has to be carefully considered and so the more time you have the better.

• Maximise ISA allowances 
  - £7,200 per person.
• Register any Capital losses with HMRC to carry them forward and offset future gains.
• Pay personal pension contributions of up to 100% of earnings to benefit from up to 40% relief.
• Pension contributions of £3,600 (Gross) for non-working spouse /civil partner/children or grandchildren who will receive tax relief of 20% in the current year.
• Child Trust Fund - a top-up of £1,200 can be made per child, per tax year.
• Assign assets to spouse / civil partner, if they pay a lower rate of tax before realising gains on assets or just to utilise any unused income tax allowance.
• Maximise Inheritance Tax Allowance - annual exemption of £3,000 per Tax Year - which can increase to £6,000 if the previous years allowance was not used (£12,000 for a married couple).
• Review all existing Life Assurance Policies to see whether they should be written into Trust. Millions of pounds are paid needlessly into estates every year that do not need to be, causing IHT liabilities.
• Ensure all Wills are in place and up-to-date

End of Tax Year planning can accumulate real value for your estate so .... Don’t Lose It - Use It!