With the end of the tax year fast approaching you have up until midnight on the 5th April to use your remaining reliefs, exemptions and allowances.
|Help to Buy ISA||£2,400||£2,400|
Any interest, income and gains made within an ISA are completely tax free. Individuals can save up to £20,000, couples can double up to a total of £40,000 tax free saving. On death, spouses can now inherit their late partner’s ISA allowance via an Additional Permitted Subscription.
Help to Buy ISAs and LISAs will help first time buyers save for a deposit quicker. In addition to the tax free status, the government provide an added kicker in the form of a 25% bonus.
Junior ISAs are available for children under the age of 18. For the two year window between the age of 16 and 18 a child will have access to both the Adult ISA and the Junior ISA, meaning even greater potential for tax free saving.
ISAs are use it or lose it allowances meaning if you don’t subscribe within a tax year, the unused entitlement will be lost forever.
|Money Purchase Annual Allowance (MPAA)||£4,000||£4,000|
Tax relief on pension savings is available on contributions up to £40,000, subject to having sufficient relevant UK earnings. Those with earnings in excess of this figure could potentially utilise unused allowances from the previous three tax years through conducting a “carry forward” exercise.
If you have already accessed your pension benefits flexibly, your pension input will be restricted to just £4,000 a year from that point going forwards. However, it is important to note tax relief on pension contributions is available all the way up until age 75.
The lifetime Allowance is the total amount of pension savings you can accumulate without suffering a tax charge on the excess. This increases by £25,000 to £1,055,000 in the new tax year, with further rises in line with the Consumer Price Index going forwards.
|Nil rate band||£325,000||£325,000|
|Main residence nil rate band||£125,000||£150,000|
|Annual gift exemption||£3,000||£3,000|
|Small gift exemption||£250||£250|
Upon death from 6th April, £475,000 worth of assets including your family home if left to direct descendants, will escape inheritance tax. For a married couple, this equates to a total of £950,000 on last death.
Individuals have an annual exemption of £3,000, up to which gifts can be made free of inheritance tax each year. It is also possible to make small gifts of up to £250 to any number of people, not including someone who has also benefitted from the annual exemption.
|Personal savings basic rate tax payer||£1,000||£1,000|
|Personal savings higher rate tax payer||£500||£500|
|Personal savings additional rate tax payer||Nil||Nil|
|Capital gains tax exemption||£11,700||£12,000|
|Married couples allowance||£1,190||£1,250|
|Rent-a-room tax free income||£7,500||£7,500|