News and Views

The 2017/18 tax year ends on the 5 April 2018, if you have not fully considered the tax planning options available to you, it’s not too late. 

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.

It’s not too late to make the most of tax planning for 2017/18. Call us today on 0800 877 8866 to discuss your needs.