Ensure you take advantage of all available tax reliefs before the end of the tax year

As we approach the end of the tax year on 5 April 2020, why not ensure you take full advantage of the tax allowances and reliefs available to you.

A wide range of tax-free allowances are available, including the £2,000 dividend allowance, the £12,000 capital gains tax annual exemption, the £40,000 annual pension limit and the £20,000 ISA savings allowance.

Depending on your circumstances, it can be worth either bringing forward or deferring dividend payments from your business to make the best use of the dividend allowance this year and next year.

Similarly, deciding which tax year in which to dispose of an asset that is subject to capital gains tax can make a difference to the overall tax paid.

There are also a wide range of allowances relating to pensions and savings that can further optimise your tax position, as well as specialist reliefs for married couples.

You can save up to £40,000 a year towards your pension tax-free, and any unused allowances in previous years can be carried forward.

An obvious tax planning point for most individuals would be to maximise their ISA allowances for the 2018/19 tax year, which currently sits at £20,000 per person.

There are a myriad of reliefs available to taxpayers to help you maximise your income each year and with a Budget just around the corner, the Government is likely to announce several changes that could make certain forms of saving more lucrative.

Posted in Business News, Latest News.