“The Government offers tax breaks to encourage everyone to save for their financial future and it would be a shame not to make use of at least some of the quite legitimate opportunities on offer,” says Russ Mould, AJ Bell Investment Director. “Just remember that this is a specialist area. Looking only for tax breaks is rarely a good idea and the underlying investment idea needs to fit with a person's overall strategy, tolerance for risk, time horizon and target return. If anyone has any doubts about whether a product or investment is suitable they should consider seeking financial advice from a qualified professional.”
AJ Bell's top ten tax tips for the end of this tax year are:
1. Try to use as many of the tax-free allowances as possible, including via contributions to ISAs and SIPPs
2. Help your children by contributing to a Child Trust Fund, Junior ISA or Junior SIPP
3. Plan investments to make the most of your spouse or partner's tax status
4. Do not forget the annual capital gains tax allowance of £10,000
5. Carry forward unused SIPP contributions from the last three years and add them to this 2014-15's allowance
6. Use the new pension freedoms to control how much income tax you pay on any withdrawals
7. Make a SIPP contribution to get relief of up to 60% if you own over £100,000
8. Apply for individual protection before you take any benefits from a pension if your pot was worth over £1.25 million on 5 April 2014
9. Put a small part of your SIPP into capped drawdown to protect your ability to make any sizeable future contributions to your SIPP
10. Make sure you update and correctly complete a nominations form for pension death benefits, so the assets go to the right people and in the most tax-efficient way.
Notes for Editors
- The full, free factsheet which includes detailed examples can be found and downloaded at: https://www.youinvest.co.uk/our-services/tax-year-end-tips