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The end of the tax year is fast approaching and it’s important to use the next few weeks to organise your finances. You should ensure you have utilised all of your tax-free allowances and have claimed the appropriate tax relief. With rules and exemptions changing all the time, a little advice can go a long way in identifying these opportunities.

To this end, here’s a simple checklist of ideas you might consider ensuring you make the most of your tax allowances and exemptions before 5 April.

  1. ISA allowance of £20,000. Couples can use a combined allowance of £40,000.
  2. £4,368 per child into Junior ISAs to help them get a head start.
  3. Consider utilising pension annual allowance. Unused allowances can be carried forward, but only from the three previous tax years. If your 2019/20 allowance is fully utilised, you should review whether you have any unused allowances from the 2016/17 tax year first.
  4. Efficient planning can help high earners to bring their taxable income down by making pension contributions or charitable donations. These can help individuals:
    • Bring their income to below the additional rate tax band, which starts at £150,000
    • Regain their Personal Allowance, which starts to be withdrawn for incomes over £100,000
    • Avoid losing Child Benefit, which is gradually removed if one parent in the household earns more than £50,000
  5. Capital Gains Tax exemption can be used by realising gains of up to £12,000 in this tax year. Larger gains can be mitigated by using different tax years. Inter-spouse tax free transfers can also be applied.
  6. IHT gifting exemption of £3,000.
  7. Large pension withdrawals can be spread over multiple years to minimise tax.
  8. Business owners can structure earnings between dividends and wages for efficient tax and National Insurance contribution planning. The first £2,000 of dividend income is tax-free.
  9. Diverting company’s pre-tax profits into a personal pension can reduce overall Corporation Tax whilst boosting retirement savings. Contributions will need to be paid before your company’s financial year-end in order for the business to qualify for the deduction in that accounting period.

If you would like to know how you might benefit from available tax exemptions, then do please contact me. I’d be more than happy to provide you with a free, no obligation meeting to discuss your personal circumstances.

If you would like to know more about how we as Financial Advisers can help you set, plan and achieve your financial goals then financial planning section of  our website: Financial Planning or send us email at: [email protected]

The information contained in our website is for guidance only and does not constitute advice which should be sought before taking any action. The information is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly, no responsibility can be assumed by Fiducia Wealth Management Limited, or any associated companies or persons, its officers or its employees, for any loss occurred in connection with the content hereof and any such action. Professional financial advice is recommended for every case.

Fiducia is a multi award-winning firm of Financial Advisers based in Dedham near Colchester situated in the heart of Constable Country on the Essex Suffolk border.

Fiducia Wealth Management Ltd. Dedham Hall Business Centre, Brook Street, Dedham, Colchester, Essex, CO7 6AD.

Fiducia Wealth Management Ltd. is authorised and regulated by the Financial Conduct Authority. FCA No. 408210