Latest NewsFebruary 2012Tax year end planning issues The imminent arrival of the new tax year provides an excellent opportunity for individuals to review their finances and ensure that they are on target to meet their goals. Two important issues to consider are ISAs and pensions. Individuals should make the most of their ISA allowance, where possible. The maximum annual investment for 2011-12 is £10,680, of which £5,340 can be in cash. This limit will increase to £11,280 for 2012-13. Furthermore, Junior ISAs enable £3,600 to be invested annually for any child under the age of 18 who does not have a Child Trust Fund. While payments into a pension scheme are made net of basic rate tax (20 percent), those paying higher rates can claim additional relief based on the amount they earn, with the potential for tax relief of up to the maximum rate paid. Therefore, a pension contribution equal to the annual allowance of £50,000 could cost an additional rate taxpayer only £25,000. Furthermore, individuals with pension savings of over £1.5 million should consider applying for fixed protection before the end of the tax year to receive protection against the lifetime allowance charge. |
||||
|
 |
Birchwood Investment Management Ltd is authorised and regulated by the
Financial Services Authority as an Independent Financial Adviser.
The value of investments can fall as well as rise and past performance is not a guide to future performance.
The Financial Services Authority does not regulate taxation and trust advice, will writing, redundancy counselling or advice on state benefits.
IFA Hertfordshire | IFA Welwyn
The value of investments can fall as well as rise and past performance is not a guide to future performance.
The Financial Services Authority does not regulate taxation and trust advice, will writing, redundancy counselling or advice on state benefits.
IFA Hertfordshire | IFA Welwyn