Year End Tax Planning

10th March 2010

As you may be aware, the end of the Tax Year is approaching on the 05 April 2010 but there is still time to maximise the tax planning opportunities available to you.

ISA's

The current ISA allowance for this year is £7,200 per person (unless you are now over 50 in which case the allowance is £10,200). From the 6 April 2010, the allowance increases to £10,200 for everyone. We can arrange for you to top up an existing ISA or start new one and you can make the investment for the next tax year at the same time. ISA's are one of the most tax efficient investments available and all growth (and any income produced) is free of tax no matter what your personal circumstances are.

Pensions

Personal contributions that you make into your pension, will attract basic rate tax relief straight away and if you are a higher rate tax payer then you will also receive an additional 20% tax relief. If you make a contribution before the end of the Tax Year, you can include this in your next Self Assessment to reduce your tax liability. Remember that pensions grow in a very tax efficient environment and when you come to retire, you can usually take 25% of your fund as a tax free lump sum.

Capital Gains Tax (CGT)

Each tax year, most individuals who are liable to CGT, get an annual tax-free allowance - currently set at £10,100. You will only pay CGT if your overall gains for the year (after deducting any losses and applying any relief that is appropriate to you) are above this amount. Any gains above this amount will be taxed at 18%.

Please do not hesitate to get in touch with us on 020 7324 6030 for further advice.

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