Make the best use of tax reliefs and allowances to help secure your financial future We will give ourselves the best chance of achieving our financial goals if we focus on what we can control: how and where we invest our money, how much tax we pay, the size of our retirement fund.
Effective financial planning should be a year-round activity to help create long-term financial security for ourselves and our family. ISAs ISAs have become one of the most popular ways to save. The ISA allowance for this tax year of ÂŁ20,000, was a very welcome step in encouraging individuals to invest for their future. However, as interest rates in the UK are lower than ever, money held in Cash ISAs is failing to achieve the very basic objective of keeping pace with inflation, resulting in real losses for savers. Individuals yet to use their ISA allowance, need to carefully consider their options to ensure that they are maximising this valuable opportunity to generate tax-efficient capital and income for the future.
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Pensions
Saving into a pension is an attractive prospect. The advantages extend further than just drawing benefits and passing money on to loved ones: the government still rewards savers by giving them tax relief on their pension contributions. Subject to certain limitations, for every 80p you contribute to a pension, the government automatically adds 20p in tax relief. Higher earners can claim extra tax relief through their annual tax return, so a ÂŁ1 pension contribution can effectively cost just 60p. Those wishing to make their retirement plans a reality should consider fully utilising their annual allowance for this tax year. Unused allowances can be carried forward from the three previous tax years. To receive a complimentary guide covering Wealth Management, Retirement Planning or Inheritance Tax Planning, contact Stephanie Beddis on 01454 440524 or stephanie. beddis@sjpp.co.uk.
