Use it or lose it - your tax year end checklist

Posted 11.02.2020

It can be daunting trying to figure out how best to organise your savings, both for you and your family. Did you know that you can pass on some of your wealth free of inheritance tax? and have you thought about your pension; whether it is enough to fulfill your retirement plans?

Don’t leave it too late. Check out ten ways to make the most of your tax-saving allowances before 5th April 2020:

  • Maximise your ISA allowance of £20,000
  • Check whether your spouse or partner has maximised their ISA allowance, for a combined tax-saving of £40,000
  • Make contributions of £4,368 each year for your child into their Junior ISA
  • Consider maximising your pension opportunities.Unused allowance may be carried forward but only from the three previous tax years. If you have utilised your 2019/2020 allowance it could be time to review your 2016/2017 tax year allowance.
  • Higher earners can reduce their taxable income, by considering charitable donations or pension contributions. These can help to reduce income below the additional tax rate band of £150,000, regain personal alloance which is withdrawn for incomes over £100,000 and avoid losing child benefit. This is gradually removed if one parent in the household earns more than £50,000.
  • Use your IHT gifting exemption of £3,000 for this year.
  • Make use of your annual Capital Gains Tax (CGT) exemption through realising gains of £12,000 this tax year. Those with larger liabilities could take gains over two tax years and utilize tax-free inter-spouse transfers.
  • Consider spreading a large pension withdrawal over two or more tax years to reduce tax income liability.
  • Business owners could consider taking dividend instead of salary to avoid National Insurance Contributions (NICs). The first £2,000 of dividend is tax free.
  • Arrange for your company’s pre-tax profits to be held in a personal pension to reduce liability to Corporation Tax, Income Tax (including dividends) and NICs. Contribution must be paid before the end of your company’s financial year-end in order to allow business to qualify for deduction in that accounting period. This deadline is usually 31st March 2020.

We’re here to help. Contact us today at or call the office on 01332 497670.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation can change at any time and are generally dependent on individual circumstances.

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