Professional Renaissance Limited is a limited company registered in England under company number 6380089. Our registered office address is: The Business Store, 98-100 High Road, Rayleigh, Essex, SS6 7AE.
Tax year end 2016
The Budget 2016
Tax dates 2016/17
The last year has seen huge change in the personal savings landscape and increased still further the need for individuals to understand their options, and take responsibility for securing their own financial future. That responsibility includes making time to explore the tax-saving and investment opportunities presented by the end of the tax year.
The Chancellor’s Autumn Statement left the ISA allowance unchanged, however the opportunity to shelter up to £15,240 with no further tax to pay on income, and growth free from Capital Gains Tax, is still a very important and valuable one. But it is one of which many will fail to take full advantage.*
It’s almost a year since the biggest shake-up to pensions in a generation greatly increased flexibility over when, and how, benefits can be taken. Saving into a pension is now a much more attractive proposition, but there will be even more changes this year, as the government restricts pension funding for higher earners and rolls out a new system of tax relief on contributions.
When added to the other valuable allowances and exemptions available, and the introduction of changes to personal taxation from April, there are many reasons why the period between now and 5 April should be a time for action.
*The favourable tax treatment of ISAs may not be maintained in the future and is subject to changes in legislation.
Despite the long-term benefits on offer, many savers will still fail to make the most of this year’s ISA allowance.
Talking tax relief
With higher rate tax reliefs on pensions under threat, it might pay to take advantage of current rules before it’s too late.
Maximise annual allowances
You can get tax relief on up to £40,000 of pension contributions this tax year and accelerate saving using ‘carry forward’.
On track for retirement?
If people have not saved enough then the freedom to take pension benefits in a variety of ways is of little value.
High Earners Beware
From April, high earners will see the most they can put into a pension drastically reduced and the lost tax relief could amount to £13,5000 a year.
Without careful planning you could end up paying 40% or 45% tax on a large pension withdrawal.
Year End Planning
Saving for Children
Tax year-end is an ideal time to put in place plans to help children get a head start in a challenging financial world.
Making use of current exemptions, and understanding the impact of new allowances from April, can help cut your tax bill.