In just three short months the present tax year – 2020-21 – will end midnight, 5th April 2021.

The UK’s tax code is predominantly time limited. Any reliefs and exemptions from UK taxes for 2020-21 will mostly expire at the end of the tax year. Accordingly, there is an imperative to review your tax affairs before this date to ensure that available reliefs are utilised or that penalising tax charges are legitimately avoided.

For example, for 2020-21:

  • Every UK taxpayer is allowed to realise £12,300 of taxable gains without being subject to a Capital Gains Tax charge. Any unused allowance cannot be carried forward.
  • For Inheritance Tax purposes there are a range of gifts that can be made tax-free.
  • Taxpayers with income exceeding £100,000, perhaps for the first time, may have an opportunity to reduce the impact of loss of their personal tax allowance and avoid a marginal Income Tax rate of 60%.
  • There is still time to consult with your pensions adviser to see if you could make additional contributions within the permitted limits. This may be the last year that higher rate tax relief is allowed if the Chancellor makes expected changes to restrict this relief in the forthcoming budget.

Clearly, we all have different personal and financial circumstances so there is no one-size-fits-all approach that can be taken. There are no guarantees that you could take advantage of current exemptions and reliefs, but please call if you would like to discuss your options.

Share:

Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Accounting in Sheffield and Doncaster Certificates

Recently Added News

Challenges for 2021-22

The new tax year starts 6 April 2021, and without dwelling too much on the historical trickery that has landed us with this odd commencement

Read More »

Related News

Recently self-employed?

If you became self-employed after 5 April 2019 and you have submitted your 2019-20 tax return before 2 March 2021, you may be eligible for

Super-deductions, what are they?

Perhaps the most innovative give-away in the recent budget was “Super-deductions for investment expenditure”. What does this mean? Companies that invest in qualifying plant and

Quick Links