Where does the time go? You think you have plenty of time to deal with your financial affairs and, before you know it, it’s the end of the tax year.
So, if you want to make the most of opportunities to reduce your tax bill, you need to act before the 5 April deadline.
With just weeks to go, you may wish to check the following:
- If you leave at least 10 per cent of your net estate to charity a reduced rate of 36 per cent rather than 40 per cent applies. Gifts to a spouse can be made now to use up his or her nil-rate band and could help to reduce the value of your estate that is over the nil-rate band
- Could you top up your pension contributions? Tax relief is available and if you own a company it could make the contribution and also potentially claim a business tax deduction.
- Have you made use of your annual inheritance tax (IHT) exemptions? Each individual has a general annual exemption of £3,000 (plus last year’s £3,000 exemption if you did not use it).
- Have you paid the maximum of £20,000 into your ISA?
- Junior ISAs or Child Trust Fund: Has £4,128 been invested for any child under the age of 18 in the last tax year?
- Don’t forget about Lifetime ISAs if you are between the ages of 18 and 40. LISAs enable you to save up to £4,000 each year and receive a Government bonus of 25 per cent on any savings deposited before your fiftieth birthday.
These are just a few examples of the many savings that can be made by prudent tax planning. For more information on any end of year tax planning issues, and opportunities to reduce your tax bill, please contact us.