Tax year end planning – WH Ireland Financial Services Company, Wealth Management & Corporate Broking | WHIreland

Tax year end planning

The 2016/17 tax year ends on the 5 April 2017, if you have not fully considered your options to get the most of tax planning options available to you, it’s not too late.

1)  Maximise your ISA allowance, the maximum limit is £15,240; this is increasing to £20,000 in the new tax year.
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 their ‘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.
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 £11,100 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 2016/17; speak to your Wealth Planner today.