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.
020 8943 9229 | enquiry@hhw-uk.com | hhw-uk.com
