The new personal tax year is here. Now is the perfect opportunity to resolve to get your tax matters in order early. Set aside a few moments now to review your finances to optimise your tax relief, allowance and savings.
Top 5 tasks to action before the 5 April 2024
- Submit your Self-Assessment now and manage payments on account
- Make the most of your ISA allowance
- Pay what you can into your pension
- Use your gifting allowances to avoid unnecessary IHT
- Use your annual CGT exempt amount by making any available disposals before 5 April 2024
15 more actions to consider:
- If you’ve not utilised your personal allowance in full, can you transfer 10% of the personal allowance to your spouse to reduce their tax bill?
- Could you transfer income to your partner to maximise the tax-free savings and dividend income limits?
- Could you transfer income to your partner to avoid paying the high income child benefit charge?
- Have you told HMRC which property should be treated as your main home for tax purposes?
- Have you and your married/civil partner nominated one property as the main home within 2 years of marriage/civil partnership? (applies if you each have property)
- Are you selling a home? Check if you have Capital Gains Tax (CGT) to pay.
- Can you reduce CGT by transferring your company shares between you and your spouse?
- Are you contributing to a child’s Junior ISA?
- Are you making the best use of tax-free savings and dividend allowances?
- Have you considered the timing of dividends and bonuses to minimise tax rates?
- Are you investing enough in your pension (or possibly a lifetime ISA) if you wish to retire earlier than the state pension age, which is likely to rise?
- If you are aged over 55, have you taken advice about the options for drawing your pension savings?
- Have you planned your capital gains to utilise capital losses?
- Have you considered setting up a Family Investment Company or Trust as a tax-efficient way of distributing wealth to your family members and loved ones?
- Consider investing in an EIS-qualifying company, SEIS or VCT. For example, an investor who uses the EIS scheme could receive 30% income tax relief, pay no capital gains on the sale of shares and benefit from Inheritance Tax exemptions. Shares must be held for 3 years to qualify for the tax benefits. The Scheme’s strict restrictions can be found here and always seek expert financial advice.
So, if you haven’t already done so, it’s worth seeking advice from an expert to gain peace of mind knowing your personal tax matters are being taken care of.
Contact our tax expert Emily@ammu.uk today.