Top 10 Tax Planning Tips for 5th April 2022

Only a few weeks remain of the current 2021/22 tax year and we are giving you 10 simple tax saving tips to consider before the tax year end of 5th April 2022:-

1. Use your Capital Gains Tax Annual Exemption of £12,300 by selling or gifting assets. Remember it cannot be carried forward to future tax years!
2. Make use of your Dividend Allowance of £2,000 in order to get tax-free income! Dividends tax rates are increasing from 6^th April 2022.
3. Use your ISA Allowance of £20,000 by investing in either a cash or stocks and shares ISA. Growth within an ISA is tax free!
4. Make pension contributions to use your annual allowance. Remember, any unused allowance can be carried forward from the previous 3 tax years!
5. Consider transferring assets to your spouse to utilise their income tax bands. Gifts of assets to your spouse are tax-free!
6. Use your annual £3,000 Inheritance Tax gift exemption to reduce your taxable estate. Additional allowances may also apply!
7. Plan the most tax efficient structure to withdraw salary and dividends from your company.
8. Make tax friendly investments into EIS, SEIS or VCT shares to reduce your tax liability for 2021/22.
9. Consider advancing any repair expenditure for your business or acquiring any assets that qualify for the Annual Investment Allowance.
10. Make Gift Aid contributions to reduce your 2021/22 tax liability if you are a higher or additional rate taxpayer.

If you wish to discuss any of the points above, please get in touch with one of our tax partners:

Alan Stewart, Tax Partner (stewarta@mestonreid.com)

Martin Cheyne, Tax Partner (cheynem@mestonreid.com)

01224 625554