Posted on: 12 Jan, 18
It’s important to take the time to give your finances a year-end check-up. The 2017/18 tax year ends on 5 April 2018, with the new tax year beginning the following day, on 6 April. These are important dates for financial planning, so it’s important you don’t miss the chance to make the most of valuable tax-efficiencies and allowances.
Time is running out to make important planning moves before this tax year’s end, so don’t delay – we’ve provided some of the key areas that could help you make the most of your money.
MAXIMISE YOUR INDIVIDUAL SAVINGS ACCOUNT (ISA) ALLOWANCE
The tax-efficient ISA allowance for the current tax year is £20,000 per person. Therefore, a married couple could put away £40,000 before the end of the tax year on 5 April. There is no Capital Gains Tax (CGT) and no tax on UK income, and also no need to declare this on your tax return. If you do not make use of your ISA allowances, they cannot be carried forward to the new tax year.
Children with a Child Trust Fund can also save up to £4,128 in the current tax year, or if they’d prefer to, transfer their savings to a Junior ISA (JISA), which are a tax-efficient way to build up savings for a child.
Any adult under 40 is able to open a new Lifetime ISA (LISA) with a 25% annual bonus paid by the Government on every £1 invested up to an annual contribution limit of £4,000. LISA contributions can continue up to the age of 50, and funds can be withdrawn tax-efficiently from age 60, or earlier for the purpose of buying a first home or for use in retirement. If you are buying a home with someone else, you can both take advantage of separate Lifetime ISAs.
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