The tax year ends on Wednesday 5 April, over a week before Easter and the Budget is almost a month earlier on 8th March, but that should not affect most tax year end actions.
As a reminder, Pembroke Financial Services have listed some of this year’s points to consider – and act on, if necessary – by the 5th April:
- If your pension benefits were worth over £1.25m in total on 5 April 2014, you have until 5th April 2017 to claim individual protection.
- If you reached state pension age before 6 April 2016, 5th April is the deadline for making Class 3A voluntary contributions to top up your state pension.
- 5th April is the last day for making pension contributions to exploit up to £50,000 of unused annual allowance from 2013/14.
- If your employer offers salary sacrifice arrangements, the new, harsher, tax rules will apply immediately for any starting after 5th April. Arrangements which begin before 6th April 2017 will enjoy the old tax rules for another year (another four years for sacrifice involving cars, accommodation and school fees).
- Any of the £3,000 annual exemption for inheritance tax that was unused in 2015/16 will be lost unless you make gifts covering both this tax year’s exemption in full and the unused balance from the previous year.
- If you have started to draw a flexible income from your pension arrangements, the maximum further tax-efficient pension contribution you can make will fall from £10,000 to £4,000 on 6thApril.
- Your annual capital gains tax exemption of £11,100 will disappear on 5th April.
- 5th April is the final day to make ISA contributions of up to £15,240 for the current tax year.
Keith Bonner, Director and IFA of PFS suggests that “If any of these strikes a chord, you should talk to us: just because there is a deadline, does not mean you have to act but it may be in your interests to consider the issues quickly”.
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The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. The value of tax reliefs depends on your individual circumstances. Tax laws can change. The Financial Conduct Authority does not regulate tax advice.