There is only one month remaining of the 2014/15 tax year. Here is a summary of personal tax reliefs and allowances to use before the tax year-end.
Income tax
The personal allowance is £10,000 for 2014/15 and will rise to £10,600 in 2015/16. Make sure that your spouse or civil partner is taking advantage of their allowance in order to minimise your exposure to any higher and additional rate tax.
Capital gains tax
You are allowed to make up to £11,000 in capital gains before you begin to be taxed at 18%. Do you have any unused exemption from 2013/14 tax year? Have you made any capital losses you can use to offset your capital gains?
Inheritance tax
You will be charged inheritance tax (IHT) of 40% for all assets above the £325,000 nil rate band. Each tax year you can give away up to £3,000 in IHT-exempt gifts.
Pension contributions
You can invest up to £40,000 a year in a pension pot and get tax relief at your marginal rate. If you’ve used up your 2014/15 allowance, you can also carry forward any unused allowances from the last 3 tax years.
Contact the Manchester accounting team at Jack Ross to discuss planning your personal tax on 0161 832 4451 or email info@jackross.co.uk