End of Tax Year Checklist

Unsure what you should be focusing on this end of tax year?

On 5 April 2022 the 2021/22 tax year closes and, with it, the opportunity to use a number of generous allowances and exemptions. Here is a list of items that you should be considering.

1. CONTRIBUTE TO YOUR PENSION

As well as helping to take care of the future, contributing to your pension can shrink your tax bill, especially if you are a higher or additional rate tax payer.

2. WIND BACK THE CLOCK

If you haven’t maxed out your pension contributions in previous tax years, don’t worry; there may still be time. But any unused annual allowance from the 2018/19 will be lost if not used by 5 April.

3. PAY INTO AN ISA

The allowance of £20,000 for 2021/22 cannot be carried forward so make sure you have made use of your ISA allowance. Lifetime ISAs and Junior ISAs may well offer opportunities too.

4. TAKE PROFITS FROM EXISTING INVESTMENTS

Have you considered using the 2021/22 annual Capital Gains Tax exemption (£12,300)?

5. CONSIDER OTHER TAX-EFFICIENT INVESTMENTS

Once you’ve ticked off all of the above, Venture Capital Trusts (VCTs) or investments eligible for the Enterprise Investment Scheme (EIS) can offer further tax benefits and may be a good option for those comfortable taking a higher level of risk.

6. MAKE AN INHERITANCE TAX SAVING OVERNIGHT

Don’t forget you could immediately reduce your Inheritance Tax liability before the end of the tax year by using allowances to make gifts to loved ones or charities.

 

 

 

7. DON’T KNOW WHERE TO START?

Let us help you to prioritise the points above. All of the tax allowances mentioned are only as valuable as their place in the big picture. If you are still trying to figure it out, now is the prefect time to discuss. Click the button below and get a free consultation.

 

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