Albert Einstein is attributed with calling compound interest: “the greatest mathematical discovery of all time” after observing its effects.
While the opportunities for tax-advantaged planning may have been whittled away over the years, and often some of the numbers might appear relatively immaterial, a similar, positive, financial impact can be obtained from the consistent use over a period of time of the various annual tax allowances still available.
The current tax year ends on Sunday 5th April 2020 but you will need to be prepared in some cases well ahead of this date.
Executive Director, John Halley offers this planning check list for your consideration.
Tax Planning
- Review methods of reducing your taxable income
- Use a spouse’s tax allowance
- Understand Property and Entrepreneurs’ Reliefs
- Talk to us about cross-border taxation & residency matters
- Use your Capital Gains Tax (CGT) allowance and consider crystallising gains or losses
Pensions
- Maximise your contributions, and utilise carry forward, to the extent possible
- Pay into a spouse’s pension
- Take lump sum withdrawals and drawdown commencements (cut-off dates for this from mid-March)
Investment Review
- Use your annual ISA & JISA allowances
- Review of mortgages and other loans
Philanthropy
- Consider Gift Aid
Protection
- Review of life insurance policies and retirement plans
- Review of Powers of Attorney, wills, trusts and other legal documents
If any of these points strike a chord and you would like to know more, please contact us to see how we can help you make the most of your finances. Our team in London and France are expert financial planners who can help you to create, conserve and enhance your wealth.
