Tax Reliefs To Use Before 5 April 2020 - Don’t Miss Out
With the end of the tax year just days away, we set out below some tax reliefs that you might wish to utilise so as to benefit from the tax savings that may arise before it is too late.
Potential Tax Reliefs 1. Each person has an annual exemption of £12,000 to set against their capital gains. This allowance cannot be carried forward or transferred to another person. So if you are thinking of selling or gifting assets and have a spouse/civil partner, speak with us to see if it is worthwhile transferring the asset to your spouse/civil partner before making any disposals, so as to utilise their annual exemption in addition to your own. 2. Use up your £3,000 IHT gift exemption for the current year, and also use the same exemption from the previous year (2018-19), if you have not already done so. The exempt amount may be carried forward one tax year only, after which it is lost. With this in mind, Kirk Rice LLP can offer advice concerning inheritance tax planning, and if this is something you would like to explore, please contact us.
18 | Fleet Life April 2020 3. Review your pension contributions (including those made via salary sacrifice and those made by your employer) to ensure that you can make full use of the annual pensions allowance. Remember that if you were registered in a UK pension scheme in the three years prior to 2019-20, you have the opportunity to use up any unused annual allowance. The carryforward is a ‘use it or lose it’ relief and this year is the last year in which you can use up the unused Annual Allowance from 2016-17. This is a complex area so; please speak with us or your IFA if you are unsure how much annual allowance is available to you. 4. For non-earners and for children, it is possible to make net pension contributions of up to £2,880 in the year. The government will add £720 to this level of contribution, so the value of the pension fund increases to £3,600 gross. 5. Contribute to your ISA. The ISA allowance for 2019-20 is £20,000, and for Junior, ISAs is £4,368. Remember that income or disposals within the ISA wrapper will be tax-free, but of course, you should check with either our Financial Services Team or with your IFA to ensure that this is a wise investment to make. 6. Make charitable donations via Gift Aid. If you are a higher rate or additional rate taxpayer, then you will gain relief on your donations. 7. If you made capital losses in 2015-16, which you did not notify HMRC about, or you overpaid tax in that year, you have until 5 April 2020 to submit a claim to HMRC to notify them of the loss or reclaim the tax overpayment, after which the claim will be out of time. 8. For enterprise investment scheme (EIS), seed enterprise investment scheme (SEIS) or venture capital trust (VCT) investments, consider making these sooner rather than later in order to generate an earlier tax repayment or to carry back the relief to the previous tax year. Remember that such investments carry risks and you could end up losing your investment, so you should consult Michael Powell in our firm, or your own IFA before investing in such companies. Tim Neale, Partner If you would like to discuss your own situation call 01252 960 500 to arrange a free 1 hour appointment or email email@example.com Please note information is given for general guidance only and specific advice should be taken before acting on any suggestions made.
Kirk Rice Accountants and Financial Advisors Victoria House, 178-180 Fleet Road, Fleet GU51 4DA Tel: 01252 960 500 Email: firstname.lastname@example.org www.kirkrice.co.uk
01252 265844 email@example.com
At Peninsula we are a family run business based in Fleet, and we treat every one of our customers like family too. That means we communicate clearly with you at every stage, do what we say we will do, and most importantly, we won’t fi x anything that doesn’t actually need fi xing. After all, if it ain’t broke, don’t fi x it! We are ex-military, and carry that badge of honour and commitment with us into every job, big or small. We’re also highly trained, experienced in a wide range of plumbing and heating issues, and fully Gas Safe Registered.
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At Peninsula we like to support our local community and we are a Fleet based business. We would like to o er you an EXCLUSIVE OFFER of 15% o your fi rst bill with us. As we’re on hand 24/7 you can call us on 01252 265844 for your FREE NO OBLIGATIONAL quotation, quoting “Peninsula2020” to activate your discount. We look forward to you becoming a proud member of our Peninsula family.
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