Planning Your Tax Year End

We are Cornwall Finance & Investment Services, our job is to assist our clients in creating, preserving and enhancing their wealth.

One of the ways we enhance wealth is by reducing the burden of taxation and pointing out the advantages of tax planning.

The tax year ends on the 31st March 2019

Income Tax

  • Utilize your Tax Free income through your Personal Allowance £12,500.00.
  • Pay yourself in Dividends as £2,000.00 is tax free Dividends above this level will be taxed at 7.5%.
  • The 40% Higher Rate Threshold is £50,000.00. Pension contributions enable tax payers, earning £50,000.00 and above to keep within the 20% Tax Band.

 

Pension Tax Relief

  • Obtain tax relief on pension contributions of up to £32,000.00 (£40,000.00 gross).
  • Carry forward Pension Contribution Allowance from the previous 3 years. Therefore the maximum single pension contribution in 2018/19 tax year, including carry forward (from 2015/16/17) is £160,000.00 This will gain £32,000.00 tax relief plus Higher Rate Tax Relief is appropriate.

 

Capital Gains Tax

  • Make Tax Free Gains up to your annual Exempt amount of £12,000.00. Our recommended Discretionary Portfolio Fund Managers utilize our client’s annual Capital Gains allowance to create tax free income.

 

Inheritance Tax

  • Married couples, utilize your Combined Nil Rate Band of £650,000.00 Husband and Wife £325,000.00 each. Plus an Individual Property Allowance of £125,000.00 each. Total estate potentially exempt £900,000.00. Those with estate above this value can utilize the range of strategies and products we offer, to reduce Inheritance Tax to beneficiaries. For example Business Property Relief investments enable assets to be outside of an estate in 2 years for Inheritance Tax purposes.

 

Individual Savings Accounts

  • Invest up to £20,000.00 into one ISAs for the year.
  • It is wise to keep holdings in a Cash ISA to a minimum. A £20,000.00 Cash ISA held over 2018, would have meant a loss in real terms against inflation of over £480.00. This is not a long term investment we recommend and for many, a waste of your ISA allowance.
  • Contact us for our range of excellent Stocks and Shares ISAs

 

We strongly recommend that you discuss your Tax Planning with a suitably qualified Independent Financial Adviser, such as ourselves. There could be other strategies that may be more appropriate for you.

If you miss your chance to plan your tax this year, don’t worry, talk to us, there will be other opportunities next tax year.

Call us to discuss your requirements 01637 839098