1) Maximise your ISA allowance, the maximum limit is £20,000. This can be split between the various types of ISA with up to £4,000 in a Lifetime ISA for those who are eligible which will attract a 25% government bonus.
2) Maximise your Pension annual allowance to benefit from tax relief of 20%, 40% or 45% on a contribution up to £40,000 depending on your individual circumstances. Remember the annual allowance reduces by £1 for every additional £2 of an individual’s ‘adjusted income’ over £150,000, if your ‘threshold income’ exceeds £110,000; the minimum annual allowance is £10,000.
3) Consider carrying forward any unused pension annual allowance from the previous 3 years if applicable.
4) Make the most of your £5,000 dividend free income; if you have fully utilised this but your spouse/civil partner has not you could transfer yielding assets to maximise this allowance going forward. This allowance is decreasing to £2,000 in the new tax year.
5) Similarly with the savings allowance which is £1,000 for basic rate tax payers and £500 for higher rate tax payers, savings can be transferred between spouse/civil partner to fully benefit.
6) For other investments outside of a pension/ISA or other tax-efficient wrapper; take an investment gain if possible to maximise your £11,300 capital gains tax allowance.
7) If you have potential Inheritance Tax liability, consider utilising your £3,000 annual gift allowance to reduce your estate.