Q: As the end of the tax year approaches, what should I check to maximise my tax allowances?
A: Many tax allowances reset on the 6th of April each year. If they are not used up before the reset, they can be lost forever. It is worth reviewing your options throughout the year and not leaving it to the last minute.
I’m sure you’re aware that you can put up to £20,000 into an ISA each tax year, but it’s worth checking how much of that allowance you’ve used.
A much-overlooked area is that of pension contributions, as these can reduce taxable income. Most people can invest up to £60,000 a year and receive tax relief.
If you are married, or in a civil partnership, with one of you a basic rate taxpayer and the other a non-taxpayer, the latter can transfer part of their personal allowance to the former.
