For many in 2016 the return from the Easter break characterises one thing; the fast-approaching end of the tax year. As in previous years, those who are in position to make the most of their annual ISA allowance but have not yet done so are taking action to use their allowance before they lose it at the end of the tax year.
However, with some significant changes coming in from the start of the next tax year, there is added incentive for people to ensure that they have maximise their tax position in the current year. For example changes to pension scheme rules, particularly for higher earners with the tapering of annual relief and the reduction in the lifetime allowance, could result in some significant and unexpected tax bills in future years unless action is taken now to mitigate those changes.
At the other end of the spectrum changes to personal allowances and the taxation of dividends and bank interest could affect ongoing gift aid payments as donors cease to have any tax liability. We’ll cover this in more detail in a future article but in the meantime those who believe they are likely to be affected by the change and had been meaning to make a charitable donation may find it worthwhile to do so now rather than wait until next tax year.
If you would like to speak to a tax adviser about the implications of new taxation rules in respect of your tax position, please contact Newshams Tax Advisers on 0800 211 8657 or email us at firstname.lastname@example.org.