If you missed out on these financial planning options for the 2016/17 tax year, then why not get organised for this tax year? This checklist covers actions which we can help you with, so that you reduce your tax bill before the tax year end of 5 April 2018. Alternatively, get in touch with us today and together we can help you to plan your financial future.
| Tick here | Tax Year 2017/2018 Checklist |
| Pensions | |
| Pay contributions to reduce adjusted net income and save tax on capital gains, investment bond chargeable gains etc. | |
| Maximise contributions for the year | |
| Use carry forward rules (unused allowance from previous 3 tax years) | |
| Consider pension contributions for children and grandchildren | |
| Venture Capital Trust Investments | |
| Income tax relief of 30%, plus tax free dividends and capital gains tax relief for subscriptions up to £200,000 | |
| Enterprise Investment Scheme (EIS) Investments | |
| Income tax relief of 30% and capital gains relief for subscriptions up to £1,000,000 | |
| ISAs | |
| Junior ISAs for children and grandchildren up to £4,128 (if child does not have a Child Trust Fund) | |
| Make contribution up to maximum of £20,000 | |
| Depending on eligibility, Help to Buy ISA and/or Lifetime ISA | |
| Seed EIS investments (SEIS) | |
| These investments offer income tax relief of 50% for subscriptions up to £100,000 and a capital gains tax exemption on disposal | |
| Gift Aid | |
| Make donations (donor in a higher tax bracket) – can claim back the difference between the basic and higher rates of income tax on amount donated | |
| Investment bonds | |
| If cashing in a bond or surrendering segments, postponing a surrender until 6 April 2017 means that it would fall into 2017/18 and any tax would not be payable until 1 January 2019 | |
| Inheritance tax (IHT) | |
| Make use of annual exemption of £3,000 (plus last year’s £3,000 exemption if not used) | |
| Also, make regular exempt gifts out of income | |
| Gifts could be to life assurance arrangements used as a means of removing tax from an estate by providing the means to pay the tax liabilities | |
| Capital gains | |
| For trustees, the annual exemption for trusts is, generally, £5,650 | |
| Use annual exemption of £11,300 | |
- This information does not constitute financial advice. Before considering any of the above we would advise you seek advice from a qualified Independent Financial Planning Adviser.
- VCTs/EIS/SEIS contracts are complex and therefore we recommend you seek financial advice to ensure they meet your circumstances. Value of your investments can go down as well as up and you could get back less than you invested.
- Jane Smith Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority.
- Registered in England and Wales. Registered number 4371002.
- Registered Office: 7 Osier Way, Olney Office Park, Olney, Buckinghamshire, MK46 5FP.
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