Posted on 15 Mar 2017
by WH Ireland Wealth Management
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. |