2013-14 Year end tax planning opportunities

posted on March 4, 2014in the Blog Category

2013-14 Year end tax planning opportunities

Four things cannot come back – the spoken word, the sped arrow, the past life and the neglected opportunity.  One reason that some people pay more tax than they need is because they do not seize the opportunities open to them.  Below is a summary for some tax saving opportunities to consider not letting slip through your fingers before 5 April.   Personal tax

  • Pensions: Have you used the carry forward rules in order to benefit from any unused allowances from the previous three tax years? This is generally the difference between £50,000 and the pension input each year.
  • Pension protection: From 6 April 2014, the lifetime allowance for the amount you could save into pensions and receive tax relief will be reduced to £1.25 million. Apply for fixed protection before 6 April 2014 to continue to benefit from the higher lifetime allowance.
  • Charitable donations: If you are a higher rate taxpayer make sure that these are under Gift Aid so that you obtain additional tax relief. The charity will also be able to reclaim the basic rate tax from HMRC. Note also that Gift Aid payments can be carried back for relief in the previous tax year
  • Reduction in personal allowance: For every £2 that adjusted net income exceeds £100,000 the £9,440 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%.
  • ISAs: Have you used your maximum annual investment of £11,520 for 2013/14? (up to £5,760 of which can be saved in a cash ISA)
  • Junior ISAs and pensions: Have you thought about investing for your children or grandchildren by setting up a Junior ISAs or pensions? In the 2013/14 tax year, you can invest £3,720 into a Junior ISA for any child under 18 who does not have a Child Trust Fund.
  • Capital gains: Have you used your 2013/14 annual exemption of £10,900? Consider selling shares where the gain is less than £10,900 before 6 April 2014. If you have worthless shares consider a negligible value claim to establish the capital loss. You may even to able to set off against your income.
  • Enterprise Investment Scheme (EIS) investments: If you are looking for investment opportunities, have you considered EIS, which offers income tax relief of 30 per cent as well as capital gains tax relief?
  • Seed EIS investments (SEIS): These investments offer income tax relief of 50 per cent and a capital gains tax exemption on disposal. There is also a capital gains tax reinvestment relief on 50 per cent of a capital gains realised on the disposal of any assets during the 2013/14 when it is reinvested into a SEIS qualifying company.
  • Venture Capital Trust investments: these investments also provide income tax relief of 30 per cent, as well as tax free dividends.
  • Inheritance tax (IHT): Have you made use of your annual exemptions? The general annual exemption is £3,000 (plus last year’s £3,000 exemption if you did not use it). Also consider making regular gifts out of your income to minimise the growth of your estate that will be liable to IHT
  Business Tax
  • Capital allowances: Take advantage of the temporary increase in the Annual Investment Allowance (AIA) to £250,000 before 31 December 2014 to provide 100% tax write off for equipment.
  • Integral features: When buying business premises check out the value if fixtures and fittings in the building. Items such as electrical, water and heating systems qualify for capital allowances and would potentially qualify for £250,000 AIA mentioned above.
  • Real Time Information (RTI): Although employers with 9 or fewer employees have been given extra time to prepare for Real Time Information (RTI) reporting of payroll information, most other employers are due to be reporting payments made to employees to HM Revenue & Customs (HMRC) electronically, on or before payments are made, from 6 April 2014.
  We would be happy to help with any of these tax saving opportunities, please call our tax department today on 0161 927 2727 Malcolm Storer - Associate Director, Personal Tax

Written By: MBL

A Night with Noddy Holder

Date : August 1, 2017

Author : Mandi Mottershead

The Collier’s Challenges For CAFT

Date : May 3, 2017

Author : Mandi Mottershead

Tax Planning – Year Ended 5 April 2017

Date : March 1, 2017

Author : MBL

Magical day for the MBL staff

Date : November 30, 2016

Author : MBL