Your Year End Tax Planning checklist

Savings and Dividends –

All tax payers may benefit from the 2016/17 £5,000 tax free dividend allowance – consider the transfer of shares to your spouse or other adult family member to maximise this new relief.

Pensions –

Have you used the carry forward rules in order to benefit from any unused allowances from the previous three tax years?

Charitable donations –

If you are a higher rate taxpayer make sure that these are under Gift Aid so that you can obtain additional tax relief. The charity will also be able to reclaim the basic rate tax from HMRC.

Reduction in personal allowance –

For every £2 that adjusted net income exceeds £100,000 the £10,000 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%%. 

ISA’s –

Have you used the maximum annual investment of £15,240 for 2016/17?

Junior ISA’s and Pensions –

Have you thought about investing for your children or grandchildren by setting up a Junior ISA or pension? In the 2016/17 tax year, you can invest £4,080 into a Junior ISA for any child under 18 who does not have a Child Trust Fund.

Capital gains –

Have you used your 2016/17 annual exemption of £11,100? Consider selling shares where the gain is less than £11,100 before 6 April 2017.

Enterprise Investment Scheme (EIS) investments –

If you are looking for investment opportunities, have you considered EIS, which offers income tax relief of 30% as well as capital gains tax relief?

Seed EIS Investment Scheme (SEIS) –

These investments offer income tax relief of 50% and a capital gains tax exemption on disposal. There is also a capital gains tax reinvestment relief of 50% of a capital gains realised on the disposal of any assets during 2016/17 tax year when it is invested into a SEIS qualifying company.

Venture Capital Trust investments –

These investments also provide income tax relief of 30%, as well as tax free dividends. 

Inheritance Tax (IHT) –

Have you made use of your annual exemptions? The general annual exemption is £3,000 (plus last year’s £3,000 exemption if you did not use it). Also consider making regular gifts out of your income to minimise the growth of your estate that will be liable to IHT.


Please get in touch or call 0161 249 5040 to discuss how you can make the most of these tax breaks before 6 April 2017 deadline.