Tax year end opportunities

Christmas dinner and cheese boards are now a distant memory and 2019 is already in full swing, with the end of the tax year fast approaching.

The tax year finishes on the same date each year, 5 April. But each year there’s the same rush to make last minute arrangements to ensure available tax reliefs and allowances are utilised. Most unused allowances are effectively lost at the end of the tax year. In other words they can’t be carried forward, so now is a real opportunity to ensure you are saving and investing as tax efficiently as possible, before it’s too late.

Here are some of the main tax planning opportunities to bear in mind for individuals:

• Income Tax personal allowance - £11,850
• Capital Gain’s Tax allowance - £11,700
• Individual Savings Account (ISA) allowance, Cash and/or Stocks and Shares - £20,000
• Junior ISAs/Child Trust Funds – maximum contribution of £4,260 per child
• Pension allowance - £40,000 (reducing to as low as £10,000 depending on income)
• Personal Savings allowance - up to £1,000 depending on income
• Dividend allowance - £2,000
• Gifting for Inheritance Tax purposes – up to £3,000 a year. NB: one unused tax year can be ‘carried forward’.

Making the most of your allowances is important but, in some cases, quite complex, so why rush at the last minute? If you would like further information on how you may be able to take advantage of these tax reliefs and allowances, please contact me on 01206 217329