Tax Year End Strategies

Planning for the Tax Year End? With everything going on in the world right now, we want to make it as easy as we can to make your money work for you and help you achieve the financial future you deserve.

What is an ISA?

An ISA is an Individual Savings Account that operates like a normal savings account. There are four types of ISAs:

A Cash ISA
A Junior ISA
Stocks and Shares ISA
Innovative Finance ISA

Why is it important to utilise your allowance?

All dividends earned from your Stocks and Shares ISA are Tax Free;
Except from paying Capital Gains Tax;
Interest earned is all Tax Free.

ISA Allowance Available to You

Adult ISAs = £20,000.00

Junior ISAs = £9,000.00

Fun Fact:

At age 16 & 17, you are able to deposit £9,000 to a Stocks & Shares ISA, and £20,000 to a Cash ISA.

Why are Pensions important?

Do you ever feel like you’re just getting by and worry if you’re going to have enough capital to retire? Well the honest answer is millions of people are too.

A Pension scheme is here to tackle just that, providing you with something to live on when you retire.

Why save into a Pension?

Before Retirement:

Pensions are a long term savings plan that has additional benefits such as Tax Relief. Contributions made into your pension will be topped up by either your employer, or the government.

At Retirement:

At retirement (minimum age 55), 25% of your pension is eligible for a Tax Free cash withdrawal.

Inheritance Benefits:

Upon death, your Pension(s) are not included under your estate. Providing Inheritance Tax benefits, such as easily transferable to your spouse/family.

Pension Annual Allowance Available to You

Pension contributions are capped at £40,000;
Non-taxpayers are able to contribute up to £3,600;
If you don’t use your allowance from the last 3 years it can be Carry Forward to the following year.

Important Tax Year End Planning to Take Note

Pension Input Amounts

Is the period of time used to measure deposits paid into your pension against your annual, money purchase, or tapered allowance.

Relevant Earnings

Is defined as employment income, such as:

Pay;
Wages;
Bonuses;
Overtime;
Commission.

Dividend Income

Tax is exempt on dividend income if it falls within your Personal Allowance.

Carry Forward

As mentioned above, Carry Forward allows you to make full use of your unused last 3 years allowance

Written by: Gregor Gough

10 March 2022

Ascot Wealth Management Limited is authorised and regulated by the Financial Conduct Authority reference 551744. Our registered office: Scotch Corner, London Road, Sunningdale, Ascot, Berkshire, SL5 0ER. Registered in England No. 7428363. www.ascotwm.com Unless otherwise stated, the information in this document was valid on 3rd February 2017. Not all the services and investments described are regulated by the Financial Conduct Authority (FCA). Tax, trust and company administration services are not authorised and regulated by the Financial Conduct Authority. The services described may not be suitable for all and you should seek appropriate advice. This document is not intended as an offer or solicitation for the purpose or sale of any financial instrument by Ascot Wealth Management Limited. The information and opinions expressed herein are considered valid at publication, but are subject to change without notice and their accuracy and completeness cannot be guaranteed. No part of this document may be reproduced in any manner without prior permission. © 2017 Ascot Wealth Management Ltd. Please note: This website uses cookies. To continue to use this website, you are giving consent to cookies being used.