Annual Allowances

As we start to approach the end of the current financial year this is a good time to consider the question, have you used all of your allowances?
Some examples are your ISA allowance which is currently £15240, your Capital gains Tax allowance (CGT) currently £11100, or your pension contribution annual allowance currently £40000 (subject to conditions).
Also did you know that you are able to go back 3 tax years and mop up any unused pension contribution relief, which is called “carry forward”, (providing that the current year is fully funded).
Once we arrive at April the 6th the ISA & CGT allowances are lost and cannot be accrued, and the earliest Carry Forward year falls off the scale.
Pension tax relief is given at your highest marginal rate, 20%, 40% or 45%.
Under the relief at source provision pension contributions are grossed up by 20%, so a payment of £80 net is grossed up and invested as £100.
Any additional tax relief, 20% or 25% is reclaimed via a self assessment tax return.
For advice on any of the above or any other aspect of your finances please contact us on the following.

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