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The financial year-end shouldn’t be taxing

By February 25, 2016February 12th, 2019No Comments

The financial year-end shouldn’t be taxing but with the Budget and the end of the tax year on the horizon, there are a few financial planning steps you may wish to take.

Making the most of your tax allowances for pensions, ISA’s, CGT, IHT and income tax, is vital to ensuring your financial affairs are organised as efficiently as possible. To make sure of this, it’s advisable to talk to us by mid-March so that any transactions can be processed in good time before 5th April.


Pension contributions made, receive tax relief at your highest rate of tax.

The Annual Allowance is currently set at £40,000, so if you are considering maximising your pension funding further, now is the time to make this contribution.

There is also scope to utilise any unused allowance from previous tax years as long as your contribution does not exceed 100% of your earnings in the tax year you make the contribution.

In certain circumstances your Annual Allowance may have been reduced to £10,000, so it is important to seek advice, as there are tax consequences if you exceed this.

Making a pension contribution is an effective way of retaining some allowances and saving tax.


One of the most tax efficient ways of saving is via an ISA (Individual Savings Account). The income generated is exempt from income tax and in a Stocks & Shares ISA, all gains made are also exempt from capital gains tax.

The investment limit for the current year (2014-15) is £15,240 per person; it is also possible to invest up to £4,000 into a Junior ISA.

There is also the Help to Buy ISA in which a 25% additional bonus up to £3,000 will be paid by the government for those saving for a house purchase deposit. You can save £1,200 in the first month then £200.00 per month thereafter.

These allowances, if not utilised, cannot be carried forward into the new tax year.

Capital Gains Tax

It is possible to generate gains of up to £11,100 this year which will be exempt for capital gains tax.

The limit is per person and therefore, couples can dispose of assets held jointly to generate a gain of up to £22,000, without any tax liabilities. Furthermore, married couples can transfer assets to each other without any tax consequences.

These allowances, if not utilised, cannot be carried forward into the new tax year.

Inheritance Tax

The current nil rate band is £325,000 per person for IHT purposes.

Currently, you can gift up to £3,000 from your estate in the tax year without incurring any tax charges. Furthermore, if you did not use this limit in the previous tax year, it is carried forward to enable you to gift £6,000 this year.

In addition, it is possible to gift £250 per person each year under the small gifts exemption.

Income Tax Allowances

Are you and your spouse making the most of your allowances?

Consider placing all investments in the name of the lower paid spouse to ensure the lowest amount of tax possible is paid on the income generated.

You can also consider transferring some of your spouse’s unused personal allowance to mitigate the tax you pay.


Hopefully, this has been a useful reminder of the tax planning opportunities available to you before the end of the tax year and a helpful prompt so you can make sure any transactions are processed in good time.

If you would like any further advice or would like to discuss your options in more detail, please contact your Cullen Wealth Consultant.