With a new tax year approaching, it’s a good time to review your finances to make the most of the opportunities available
We recommend you speak with your financial adviser about the options available. We are not authorised to give financial advice so if you do not already have a financial adviser, you can get a list of regulated financial advisers in your local area at www.unbiased.co.uk or by calling Unbiased on 0800 023 6868.
Review your income requirements
Make sure you inform us of any changes to your income before the cut-off date.
The key date for the Modular iSIPP is Wednesday 18 March (by 5pm). This is the deadline to make any amendments to your SIPP income level in time for the 1 April payroll.
You can view the deadlines for all our other products here.
Make the most of this year’s ISA allowance
The maximum you can subscribe to an ISA in the 2019/20 tax year is £20,000. With an ISA you can grow your investments without capital gains tax and income tax, helping you to get the most from your investment whilst having complete control on where your money is invested.
If you haven’t used up your £20,000 ISA allowance for 2019/20, now is the time to do so as you cannot carry over any leftover ISA allowance to the new tax year.
Find out more about the Modular ISA.
Take advantage of your unused allowance
You can carry forward any unused annual allowance for pension contributions for up to three years, maximising the amount of tax relief you may be entitled to. However, remember you cannot contribute and receive tax relief on more than your net relevant earnings in the current tax year.
In the 2019/20 tax year, the annual allowance is £40,000. This includes contributions made by you, your employer and any third parties.
If you have flexibly accessed your pension savings, then you will instead have a Money Purchase Annual Allowance of £4,000 a year, which cannot be carried forward to the next tax year.
Making the most of Capital Gains Tax exemptions
If you hold investments outside of a SIPP or ISA (such as stocks and shares in a GIA) and you sell or otherwise dispose of them (for example as a gift), you may have to pay Capital Gains Tax (CGT). It is therefore important to ensure you make use of the annual CGT exemption (currently £12,000). If your gains have exceeded the annual exemption, the rate of tax is either 10% or 20%, depending on your income tax position for the year.