New Tax Year, New Opportunities: How to use your tax allowance during the coronavirus-crisis
Amid the market mayhem caused by the coronavirus, it’s been easy to forget that a new tax year has just begun and that means that your investment and savings allowances have been reset.
During the most painful sell-off in over a decade, the temptation might be to steer clear of the stock markets. But the current turbulence shouldn’t put you off making the most of the tax breaks that come from using up your allowances. Remember use it or you lose it.
Following the Chancellor’s delivery of the Spring 2020 Budget on 11th March 2020, we have summarised the key financial planning changes below.
Tax relief on pension contributions
Those earning around or below the level of the personal allowance and saving into a pension may benefit from a top-up on their pension savings equivalent to the basic rate of tax, even if they pay no tax.
Whether they receive this top-up depends on how their