Have you utilised all your year-end tax planning deadline opportunities?
As we near the 2017/18 tax year end on 5 April, if appropriate to your particular situation, we’ve provided some tax planning tips to help you maximise the use of your various tax allowances and minimise the tax you pay.
We take a personal approach to your tax needs. Informed by our detailed knowledge of your affairs, we explore some of the best options which you could consider to help manage your tax obligations most effectively.
Income Tax planning
Ensure income-producing investments are held by the spouse who has the lowest tax rate
Make use of the transferable married couple’s allowance where one spouse is not fully using their personal allowance and the tax- paying spouse only pays the basic rate of tax
If your income is around the £100,000 figure, look at ways of preserving the personal allowance. You could consider making Gift Aid payments or pension payments to help minimise loss of this allowance
Consider topping up any Individual Savings Accounts (ISAs) you or your spouse have to the maximum limit, which is £20,000 each
Make use of any unused annual pension allowance brought forward before it is lost
Make use of the £5,000 dividend allowance available when considering salary and dividend options
If your company car arrangement is coming up for renewal, consider opting for cars with lower emissions and list prices to help minimise an Income Tax charge
Inheritance Tax (IHT) planning
Use your annual exemption for gifts of up to £3,000 per tax year; this exemption can be carried forward to the next tax year
Regular (qualifying) gifts out of net income are exempt from IHT – consider establishing a pattern of regular gifting to take advantage of this tax break
Wedding or civil ceremony gifts of up to £1,000 per person (£2,500 for a grandchild or great-grandchild, or £5,000 for a child) are exempt from
Small gifts exemption up to £250 – you can give as many gifts of up to £250 per person as you like during the tax year, providing you haven’t used another exemption on the same person
Capital Gains Tax planning
Make use of the annual exemption – currently £11,300 – and remember that assets can be transferred between spouses and registered civil partners tax-free
THE INFORMATION CONTAINED IN THIS ARTICLE DOES NOT CONSTITUTE INDIVIDUAL ADVICE. ALWAYS OBTAIN PROFESSIONAL ADVICE RELEVANT TO YOUR OWN CIRCUMSTANCES.
ANY REFERENCE TO LEGISLATION AND TAX IS BASED ON OUR UNDERSTANDING OF UNITED KINGDOM LAW AND HM REVENUE & CUSTOMS PRACTICE AT THE DATE OF PRODUCTION. THESE MAY BE SUBJECT TO CHANGE IN THE FUTURE. TAX RATES AND RELIEFS MAY BE ALTERED.
THE VALUE OF TAX RELIEFS TO THE INVESTOR DEPENDS ON THEIR FINANCIAL CIRCUMSTANCES. NO GUARANTEES ARE GIVEN REGARDING THE EFFECTIVENESS OF ANY ARRANGEMENTS ENTERED INTO ON THE BASIS OF THESE COMMENTS.