Plan ahead in 2019 – do you know what you are entitled to?
Tax is a complex area and nobody wants to be troubled by it, but it’s not all about HMRC having a share of your hard-earned cash, as there are many ethical and fair allowances which you are entitled to. As the 2017/18 personal tax return filing deadline passes, we help you to effectively plan for the forthcoming tax year end on 5 April 2019, enabling you to make sure your money is working the best it can.We point out the areas to explore tax savings and where you could be caught out.
Things to think about now: Use your ISA allowance The ISA limit for this tax year is a generous £20,000, but this will reset on 5 April 2019. The allowance is a ‘use it or lose it’ allowance and it cannot be carried over. Children under the age of 18 who do not have a trust fund are also entitled
Rob Case, partner at Randall & Payne
to an ISA allowance of £4,260. Use your Inheritance Tax annual allowance
Each year, every individual is entitled to gift £3,000 without being liable to Inheritance Tax. You can carry over this exemption to next tax year, but the maximum you can gift in a single year is £6,000, however, it will be lost after two years has passed. It is also worth noting that you can make individual gifts of up to £250 to anyone free from Inheritance Tax. Use your Capital Gains Tax annual exemption Are you, or your family, considering selling some assets? The annual exemption (or tax-free gains) that you can make in the 2018/19 year is £11,700. It may be worth considering delaying the sale of some assets if you have already used up this allowance, and make- use of next year’s allowance which increases to £12,000. However, if you haven’t already used this allowance you may want to think about bringing forward the sale of assets.
22 | February 2019 | www. punchline-gloucester .com
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