Your tax year-end planning checklist

Many tax allowances work on a "use it or lose it" basis: if you do not use them by 5 April, they are gone. A little planning before the end of the tax year can make a real difference.

Savings and investments

• ISA allowance: you can invest up to £20,000 a year across your ISAs, with growth and income free of tax.
• Capital gains: the annual exempt amount is £3,000. Consider whether to realise gains before 5 April, and whether spouses or civil partners can each use their own allowance.
• Dividends: the first £500 of dividend income is tax-free.

Pensions

Pension contributions attract tax relief at your highest rate of Income Tax. The standard annual allowance is £60,000, and unused allowance from the previous three tax years may be carried forward.

Couples and families

• Marriage Allowance: if one partner does not use all their Personal Allowance, they may be able to transfer part of it to the other.
• Gifts: you can give away £3,000 each tax year free of Inheritance Tax, and carry forward any unused amount for one year.

For business owners

• Review the balance of salary and dividends you take from your company.
• Consider the timing of capital expenditure to make the most of capital allowances.
• Check whether Making Tax Digital for Income Tax will apply to you from April.

Plan early

The best results come from planning well before the deadline. Book a review with us in the new year, and we will look at your whole position and identify the opportunities that apply to you.