skip to Main Content
Use It Or Lose It!

Use it or lose it!

With the end of the tax year a mere month away here is a reminder of the allowances you should not miss out on.

Personal Allowance – if you aren’t earning enough to fulfil your Personal Allowance (currently £12,500) then you could release some money from your investments to use up this allowance and potentially not pay tax on that money.

Capital Gains Tax Allowance – an opportunity to take investment profits of up to £12,000 (2019/2020) “tax-free” each year – worth £2,400 a year for a higher rate taxpayer.

ISA Allowance – if you don’t use it, you lose it. A total of £20,000 across all of your ISA accounts that could be earning money in a tax-efficient environment.

Pension Annual Allowance – whilst this can be carried forward for a number of years, you must have the relevant earnings for the contribution in the tax year in which you contribute, so if you have the allowance and the earnings this year it might be best to use it up.

Gifting – there are a number of gifting allowances that may be beneficial for Inheritance Tax purposes. Have a look on the HMRC website for more info: https://www.gov.uk/inheritance-tax/gifts

You should seek advice to see if using any of these allowances is suitable in your situation so, if in doubt, get in touch. Don’t forget, if you are an existing Redwood Client on a Service Level Plan, we will not charge you to use up your allowances! New funds placed into your portfolio through your ISA or pension will be free from any initial Redwood fees!

Redwood Financial is one of the south’s leading Investments, Pensions,Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of Estate Planning, Lasting Powers of Attorney, Probate, Pensions, Savings & Investments, we can advise on any situation.

We are winners of the prestigious Will Writing Firm of the Year 2018, and an approved member of the Trading Standards Buy With Confidence Scheme