With a month to go until the end of the 2023/24 tax year end on April 5th 2024, here are our top tax year end planning tips:
- Take advantage of the tax-free benefits offered by individual savings accounts (ISAs). You can invest or save up to £20,000 in each tax-year and ensure your savings grow tax-free.
- If you are saving for your children, consider opening a Junior ISA which has an annual allowance of £9,000.
- Make the most of tax relief by fully funding your pension scheme, especially if your annual income exceeds £100,000. Good strategic planning can result in significant tax savings, with potential relief of up to 60%.
- Take advantage of your annual tax-free capital gains tax allowance, which currently stands at £6,000 but will reduce to £3,000 after April 6th. Don’t miss out on this opportunity to minimize your tax liability.
- If you are married, consider transferring income generating assets to the spouse with the lower earnings.
- Ensure you’re making the most of your tax-free personal allowance, currently set at £12,570.
- Consider investing into assets that generate dividends as you can earn up to £1,000 tax free on dividends in this tax year.
- Explore venture capital trusts and enterprise investment schemes since these can attract 30% income tax relief.
- The annual gift allowance allows you to gift up to £3,000 immediately free of Inheritance tax (IHT). There is also the option to carry forward any unused allowance from the previous year for additional tax savings (up to £6,000).
- Contact an independent qualified professional as needed to give you specific advice that is best suited to your situation and objectives.
If you are looking to discuss your financial plan or investments, please get in touch with one of our Financial Planners for tailored, regulated, and independent advice.
This note is intended for general information only and should not be considered specific advice. The value of your investments and the income they generate can go down as well as up. They can go down as well as up in value and may be worth less than what was paid in.