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Death and taxes......part two. says that UK taxpayers “are set to waste as much as £4.7 billion in tax inefficiencies this year”.

Not avoiding tax, but taking advantage of legitimate tax free savings, tax relief on investments and maximising tax free allowances. Savings Image

As Easter falls on the 5th April this year the critical date is the 2nd, so make the most of your tax-free personal allowances and the trigger points for these; the flexibility of the new ISAs or NISAs, the merits or otherwise of cash ISAs and the new tax-free £1,000 cash bank deposits; the broader scope of Junior ISA; as well as plan to mitigate capital gains, corporation and most importantly, inheritance tax. 

For all the chopping and changing of legislation, pensions remain one of the most tax efficient ways of long term saving and have now become that much more flexible, but beware the unexpected tax charges and take advice and listen carefully to it, before cashing in or  selling on your annuity. Also take advice on paying in a lump sum and applying for fixed protection, valuing your pension before this tax year-end and deferring taking any March salary or dividend payments until into the new tax year.

When it comes to investing, take advice on the tax relief available on a variety of investments, be they single-premium bonds, growth oriented unit trusts and OIECS, EIS and VCT as well as considering qualifying investment strategies. And take advice on Capital Gains Tax annual and other exemptions and the use of one’s spouse’s allowances and exemptions.

And remember, always seek professional financial advice!

By Allan Noel Baker.
Note: OEICs - Open-ended investment companies, EIS - Enterprise Investment Schemes, VCT - Venture Capital Trust

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