Are you tax year ready?

With the end of the tax year on the horizon this is a crucial time to prepare your finances to take account of all tax deadlines and the changing financial landscape that is approaching with the new tax year. There is not long left and there could be much that needs to be done.

Our tax year ready factsheets address the current financial issues that we are dealing with for our clients. They cover a multitude of topics related to the end of the current tax year, and changes approaching in the new tax year beginning on April 6.

There are numerous tax breaks and rule changes to be considered. Some should help you enhance your wealth, others require steps to avoid punitive action.

We hope you find the factsheets of interest and we would be happy to answer any questions that arise as a result of reading them.

To download your free copy simply follow the link

Topics covered

Protect your pension before it’s too late

Pension savers are at risk of punitive tax charges, due to a crucial change made to allowances in April last year. If you are affected, there may still be time to take action to escape a tax hit. However, you need to get a plan in place fast to ensure you do not lose out.

Inheritance tax: do you qualify for the new main residence nil rate band?

A new allowance due to be introduced in April will significantly increase the inheritance tax threshold for many.

The changes mean that eventually some parents and grandparents will be able to pass on assets worth up to £1m, including a family home, without any IHT being charged. However, qualifying for the allowance is not straightforward.

Getting ready for the new tax year

The start of the new tax year is a time when we help clients make sense of any changes to the financial landscape. As well as a range of increases to allowances, the new tax year will see the introduction of the new Lifetime ISA, aimed at those between the ages of 18 and 39 intent on saving for a house or to boost their pension pots. If used correctly investors can receive a generous 25% boost to contributions from the government.

Are you using all your allowances?

In the run up to the end of the tax year, you will want the peace of mind that all your allowances are being used. As well as looking at ISAs and pensions, this can be a good time to review what money you can gift to reduce your potential inheritance tax liability. It is also a good time to review your portfolio(s) to minimise any capital gains tax you have exposure to by using your Annual Exempt Amount.

Trusts – watch out for the 10 year anniversary charge

A large number of trusts are at, or approaching, an important 10-year tax deadline. It can’t be ignored – if you are a trustee it is essential that you check whether a tax charge is due. Fail to pay what you owe and you could face penalties.

Building a tax-efficient income portfolio

With interest rates at an all-time low, producing a decent income from your investments is a challenge. All the more reason to look at making use of the available tax allowances, so that the income from your savings and investments isn’t further depleted by tax.