What Do You Need To Know Before The End Of The Tax Year

As the end of the tax year quickly approaches, you should be thinking about how to maximise your allowances from your savings to you pension pot and also keep in mind the tax rules.

Tax allowances

Firstly, before the end of the tax year, you should think about making the most of your tax allowances.

ISAs – In the 2021/2022 financial year, you can save up to £20,000 in a tax efficient Individual Savings Account (ISA). You can save your money in one ISA or split it between a cash ISA and a stocks and shares ISA.

Make the most of your Child Trust Fund or Junior ISA – if you open a Junior ISA or you already hold a Child Trust Fund (CTF) for a child, you can save up to £9,000 in the 2021/2022 tax year without paying any UK income tax or capital gains tax on any income or gains arising.

Pension Contributions

Secondly, at the end of the tax year, you should think about maximising your pension contributions. The payment attract tax relief up to £40,000 or the Net Relevant Earnings, whichever is lower. You can contribute up to the limits if income allows and can carry forward unused allowances.

Capital Gains Tax Allowance

You can sell investments, property and other assets in the 2021/2022 tax year without having to pay any tax on the first £12,300 worth of gains. You can’t carry over any unused capital gains tax allowance to the next tax year. So, if you are planning to sell assets that would make you more than £12,300 in profit, you might want to stagger the sale over two tax years.

Get in touch

We specialise in pension and investment advice. We want you to feel informed and confident about your financial future. To discuss the above in more detail, please get in touch with us on: 01932 943028 or via email: info@resolvefs.co.uk

*Please note: Investments carry risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invest. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor. 

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