Tax Year End Planning

This tax year will end on 5 April, If you haven’t already taken advantage of the various allowances and exemptions you’re entitled to by then it will be too late.

Taxation information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.

The allowances include:

ISA allowance:

• You can invest up to £20,000 into an Individual Savings Plan (ISA) where the growth is free of tax.
• The allowance applies to stocks and shares and cash ISA’s, or a mixture of the two.

Capital gains tax:

• The annual allowance is currently £11,300.
• If the value of your non tax exempt investments or shares include substantial gains, you might want to consider selling to realise gains within your allowance.

Personal Contributions to Pension:

• The annual allowance is the higher of £3,600 or 100% of earnings up to a maximum £40,000.
• You can carry forward the previous 3 years unused allowance subject to your income.
• You receive up to 45% tax relief on the contributions.
• Care has to be taken regarding the Tapering of the Annual Allowance and Lifetime Allowance.

Business contributions to Pension:

• Contributions paid by an employer are not restricted by salary.
• Unused contributions can be carried forward from previous years.
• Contributions are classed as a business expense thus reducing corporation tax.
Enterprise Investment Schemes:
• Contributions qualify for 30% income tax relief.
• Capital Gains Tax can be deferred.

Inheritance Tax:

• Each tax year you can make gifts to reduce the value of your estate.
Your circumstances and needs are unique to you, please speak to us in good time to ensure you don’t miss any opportunities.

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