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 5th 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

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