Deadline approaching for year-end tax planning opportunities

The opportunity to maximise this year’s allowances for Pensions, ISAs, CGT, IHT and Income Tax will be gone after 5^th April.  Below are some of the most popular tips.

ISAs

ISA allowances are £20,000 per individual, or, for a Junior ISA/Child Trust Fund, £4,260 per child.

Pensions

The Annual Allowance is £40,000 per year, depending on your income, and you can make contributions for children and/or grandchildren up to £3,600.

Dividend Taxes

The dividend allowance is £2,000, so if you run your own company ensure that you distribute at least this amount.

The Personal Savings Allowance

The first £1,000 of interest (£500 for a higher rate taxpayer), is tax free.  If you have a director’s loan account within the company, think about charging interest which is deductible in the company’s accounts without being charged on you.

EIS/SEIS & VCT.

Investments can attract income tax relief of up to 50%, as well as Capital Gains Tax (CGT) relief and being CGT free themselves.

Inheritance Tax

You can give away up to £3,000, and ‘use up’ last year’s allowance if you gifted nothing last year.

Andrew Cowe, Tax Manager, Brearley & Co

Contact us if you need tax advice