With the hope of spring in the air, why not take the opportunity to focus on your finances before the end of the tax year? Double-check you’ve taken advantage of the tax-efficient allowances available; we’re on hand to get you organised in good time.
Here’s a reminder of some of your main tax planning opportunities:
• Pensions – current Annual Allowance of £40,000 (for every £2 of adjusted income over £240,000, an individual’s Annual Allowance is reduced by £1, the minimum Annual Allowance will be £4,000) and Lifetime Allowance £1,073,100
• Individual Savings Accounts (ISAs) – maximum annual contribution of £20,000 per adult
• Junior Individual Savings Allowances (JISAs) – maximum annual contribution of £9,000 per child
• Gifting for Inheritance Tax (IHT) purposes – up to £3,000 a year (some other exempted/small gifts allowable)
• Using Capital Gains Tax (CGT) allowances – £12,300 annual exemption per person, £6,150 for trusts – (currently under review, correct at time of publication)
• Enterprise Investment Schemes (EISs) – maximum investment of £2,000,000, relief on investments in certain unquoted trading companies, up to £1m per annum (or £2m as long as at least £1m of this is invested in knowledge intensive companies)
• Venture Capital Trusts (VCTs) – maximum annual investment of £200,000, relief on investment in certain qualifying companies.
The value of investments and income from them may go down. You may not get back the original amount invested.