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End of Tax-Year Planning 2022

As the end of the tax year approaches, now is the perfect time to have your financial affrais in order and to double check you have taken advantage of all the tax-efficient allowances availble to you.


Pension Allowances

You can contribute as much as you want into your pension, but there is a limit on the amount of tax relief you will receive each year.

The current annual allowance is £40,000.

A Lifetime Allowance also places a limit on the amount you can hold across all your pension funds without having to pay extra tax when you withdraw money. This limit is currently £1,073,100.


Individual Savings Account (ISA) Allowance

The annual allowance is currently £20,000. 

You can put this into a Cash ISA, invest in a Stocks & Shares ISA, or mix and match across ISAs, however you cannot exceed the annual allowance. 

ISAs represent a great way of topping up retirement income and theres no Income Tax or Capital Gains Tax on ISA proceeds.


Junior ISA Contributions

Junior ISAs are a tax-efficient way to build up savings for your children and work just like your ISA. 

This can be put in a Cash ISA and/or Stock & Shares ISA, however the annual limit is £9,000 per child.


Gifting for Inheritance Tax Purposes

You can make gifts worth upto £3,000 in each tax year. These will be exempt from Inheritance Tax (IHT) on your death.

You can also carry forward any unused part of the £3,000 to the following year only.


Capital Gains Tax Allowance

The current Capital Gains Tax (CGT) annual exemption is £12,300.

This relief cannot be carried forward so you may look to crystallise gains up to this amount before the end of the tax year.


With the tax year-end imminent, please get in touch with our team if you wish to find out more information or discuss your end of tax-year planning.