Tax Year End Checklist

Tax Year End Checklist

Consider maximizing your annual tax allowances and exemptions as the tax year end approaches on April 5th. A financial adviser can help navigate this process effectively.

1. Utilize your ISA:

You can contribute up to £20,000 annually across various ISA types: cash, stocks & shares, innovative finance, and lifetime. Consider a stocks and shares ISA for long-term investments. Lifetime ISAs offer a 25% government bonus on contributions, up to £1,000 yearly. Your first payment into your LISA must be made before you turn 40. You can put in up to £4,000 each year, until you’re 50.

2. Inheritance Tax (IHT) Planning:

Discuss IHT with a financial adviser due to its complexity and implications.

Utilize the annual £3,000 gift exemption You can carry any unused annual exemption forward to the next tax year – but only for one tax year.

Gifts above £3,000 can be tax-free under certain conditions or classified as potentially exempt transfers (PETs) if survived for seven years.

3. Capital Gains Tax (CGT) Utilization:

Make use of the annual CGT exemption, currently £6,000 (reducing to £3,000 in subsequent years).

Seek advice from a regulated financial adviser before making decisions.

4. Junior ISA (JISA) Contributions:

Contribute up to £9,000 annually to a JISA for children, accessible at age 18 and not counting towards your own ISA allowance.

5. Pension Contributions:

Paying a lump sum into your pension before 5 April could give your retirement savings a welcome boost. Generally the maximum you can pay into a pension each year and receive tax relief is the lesser of £60,000 or 100 per cent of what you earn. Tax planning requires careful consideration and professional guidance to mitigate risks and optimize savings. Consult a financial adviser to ensure compliance and minimize tax.

For a second opinion, or a fresh look at your finances, give Holland Hahn & Wills a call for a free initial chat. liabilities.

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