Make sure that if you can afford it you and your family make full use of the ISA allowance for this year, which is £15,240 per person. Don’t forget the Junior ISAs either where the allowance in 2016 to 2017 is £4,080.
Capital gains tax
The capital gains tax allowance for 2016 to 2017 is £11,100. Gains above this level from the sale of assets such as art, shareholdings and property besides your main residence could be liable for capital gains tax (CGT) of up to 28%.
As you cannot carry the tax allowance into the next financial year, it may be prudent to time asset sales accordingly and split major shareholding disposals, for example, between one tax year and another.
It may also be worth switching some of your assets into your partner or spouse’s name to take advantage of their CGT allowance.
Pension tax relief
Check whether you are receiving the full amount of tax relief on your pension contributions. It is possible to claim relief on private pension contributions worth up to 100% of your earnings for the year. While many pension providers add tax relief to your pension pot at source, if you pay tax at a rate higher than 20% it is worth checking that the full amount is being claimed. If you pay 40% or 45% you can claim for the additional 20% or 25% via your tax return.
If you have any questions about how you can ensure you are making the most of your investments and the allowances available, please give us a call on 020 3795 4747.
Taxation, and reliefs from taxation can change at any time and are dependent on individual circumstances, therefore you may want to seek specific tax advice.