Gilbert Stephens Solicitors: Tax Allowances And The Turn Of The Financial Year
We are very nearly at the end of the 2018/19 financial year and Marcus Quick has some last-minute advice for this tax year and its tax allowances and news about the new one.
This is your last chance to take advantage of your tax-free allowances and exemptions before 5th April 2019, as some ISA allowances have a ‘use it or lose it’ position. Using up allowances can reduce the amount of tax you are liable to pay and your future taxable income. The ISA allowance remains at £20,000 for the 2018/2019 tax year and payments into a pension can attract tax relief at an individual’s highest marginal rate.
Following the recently announced inflation figures even some deposit-based Cash ISA accounts are now, finally, able to offer real returns when fixed over the medium term, for those with a lower risk profile.
For those clients wishing to provide gifts to family, the £3,000 allowance can be utilised.
For the tax year beginning 6th April 2019, the Personal Tax Allowance is increasing to £12,500, with the basic rate limit going up to £37,500. This increases the higher rate threshold to £50,000, a year earlier than the government originally hoped to achieve, removing a number of people from the 40% tax bracket.
The Pension Allowance will not be increasing this year but remaining at £40,000 (subject to income limits). Considering the dramatic reductions in the Pension Allowance in the last decade, this stability could be seen as a good thing.
If you would like to do a last-minute check on any entitlements or allowances, get in touch with Marcus Quick on 01392 346464 or email firstname.lastname@example.org.