Tax Year-End Opportunities
ISA
Contributions
As I am sure most of you are aware the Individual Savings Account (ISA) contribution limit is £20,000. This limit is per tax year and over and above any existing ISAs that can be transferred. The tax year end is rapidly approaching (April 5th) so if you have not used your allowance for the 2021/2022 tax year then please get in touch and we can help you find a good home for your monies
Pension
Contributions
A similar message for Pension contributions. If you have spare savings and are looking for tax advantages savings opportunities don’t overlook the chance to top up your Pension. Tax relief at your highest marginal rate is still available and 25% of the value of the pension pot is still available tax free when you need it (from age 55 under current rules).
Tax
For Directors of a Limited Company or Sole Traders additional pension contributions can be an excellent way to reduce your company tax bill. If you are not sure how this works speak to your accountant or give us a ring and we will explain your options.
Previous tax years
If you have not maximised your potential pension contributions in previous tax years did you know you can go back and carry forward any unused annual allowance? Anyone who was a member of a pension scheme in the year they’re carrying forward from is eligible to use carry forward to the current year. It may be that your income or business income has improved over the last few years and you want to make up for contributions that you couldn’t afford then but can now. There are allowances you can get back, so make the most of them. Give us a ring and we can help you make the most of this opportunity.
Please do not delay or you may not have enough time to act before the tax year-end deadline.
Call us on 01733 314553 or email info@brookswealth.co.uk