Now that the New Year has begun in earnest, and everyone is back into work-mode (although perhaps still struggling a little with some post-Christmas blues), all thoughts have turned towards the looming 31 January online tax return filing deadline.
Nevertheless, it is important to spare some time in consideration of less immediate deadlines; in particular the 5 April tax year end. During these last few months of the 2013/14 tax year, you may wish to think about utilising any remaining annual exemptions, including the individual £10,900 on Capital Gains Tax and the £11,520 which may be invested in ISAs.
In addition, these first few months of 2014 may well be your final opportunity to benefit from the £1.5 million lifetime allowance for pensions, as this is to be reduced by £250,000 from the beginning of April. Similarly, the new tax year will bring with it a reduced annual pension allowance of £40,000, lowered from £50,000. As such, there is only a small window of opportunity remaining to take advantage of these larger allowances.
If you would like some advice about these changes or about responsibly reducing your tax liability, our Chartered Financial Planner, Howard, can be contacted on Howard@Inspire.uk.net. Alternatively, you could get in touch with your usual Inspire contact, or email us on firstname.lastname@example.org.