Personal Savings Allowance: If you can get a higher rate of cash return outside a cash ISA and inside a cash savings account then don’t forget that you may have a Personal Savings Allowance for tax free interest on savings anyway – for basis rate taxpayers (20%) the PSA is £1,000pa tax free interest and for higher rate tax payers (40%) the PSA is £500pa tax free interest. There is no PSA for additional rate tax payers at 45%.
If you don’t invest in stocks and shares then consider that there is a £2,000pa tax free dividend allowance. This means you can earn up to £2,000 pa tax free from dividends when invested in shares.
Make sure you use up your usual ISA allowances of £20,000pa per adult and junior ISAs £9,000pa per child.
Other areas that may interest savers and investors are venture capital trusts and enterprise investment schemes attract 30% tax relief. Also, insurance investment bonds may be of interest to defer taxation or assign investments to others in a lower tax position which means they may be able to take gains without any further tax due.
Don’t wait, get some early tax year end planning done now. Contact us.