10 top tax year-end tips
- Consider contributing to an ISA – the 2018/19 allowance is £20,000 and cannot be carried forward. Don’t forget Junior ISAs for children under 18 – their allowance is £4,260.
- Remember that it’s possible to gift cash of up to £3,000 per tax year (you can carry forward up to one year’s gift allowance) and be immediately free from Inheritance Tax.
- Make use of annual capital gains tax allowances (currently £11,700 each) to re-base portfolio profits or consider drawing part of your income as regular capital gains. Don’t forget that spouses can transfer assets to use each others allowances.
- If you have used your ISA allowance and maximised your pension allowances, you could consider a Venture Capital Trust (VCT) investment. Income Tax Relief is available at 30% of the VCT investment and can be used to offset other tax liabilities.
- Don’t forget that you can claim tax relief on charitable donations.
6. If one spouse/partner is a lower rate taxpayer than the other consider transferring investment income or capital to the lower rate taxpayer.
For your pension
7. Consider make a top-up pension contribution. This is the last opportunity to use any available allowance from the 2015/16 tax year. If you earn over £110,000, don’t forget to check if you are subject to the tapered annual allowance rules.
8. If your taxable income is in excess of £100,000 for 2018/19 you will lose part of your personal income tax allowance. Similarly if you earn more than £50,000 and you or your partner receives child benefit, a personal pension contribution can significantly reduce the effective rate of income tax..
9. If you do not have earnings you can make a pension contribution of up to £2,880 and still qualify for basic rate tax relief uplift (even if you do not pay tax).
10. If you have applied for pension lifetime allowance protection, please consider carefully before making a new pension contribution.