The value of investments and any income from them can fall and you may get back less than you invested.

Five things to do before the end of the tax year

Five things to do before the end of the tax year

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With around a month to go until the end of the tax year on April 5, we look at ways you can maximise the tax efficiency of your savings and investments.

 1. Use your ISA allowance.

You still have time to use your annual Individual Savings Account (ISA) allowance. This stands at £20,000 for the 2019/20 tax year. All income and investment growth is free from tax – making ISAs an attractive way to save for the long term.

If you don’t use your allowance, you lose it – and it’s always worth boosting the tax-efficiency of your savings and investments. 

2. Save for your children

If you have children, you can start saving for their future, or top up any savings you have already made on their behalf. A Junior ISA is a tax-efficient investment account for children aged under 18.

While only a parent or guardian can open a JISA, anyone, including grandparents, can pay funds in. For the 2019/2020 tax year you can invest up to £4,368 on behalf of each child.

3. Top up your pension

How much have you paid into a pension so far this tax year? Your annual allowance – or the limit on the amount of pension contributions that can be made each year and qualify for tax relief – remains at £40,000. However, bear in mind this may be lower, depending on your individual circumstances.

Remember there is a limit on the size of overall pension savings you can accumulate without facing a hefty tax charge of up to 55% on the excess. Known as the lifetime allowance, this stands at £1,055,000 for the 2019/20 tax year.

4. Reduce your inheritance tax bill

You can gift wealth tax-efficiently to reduce the value of your estate for inheritance tax (IHT) purposes. This could, for example, give children a leg-up on to the property ladder or kick-start their pension.

There are various allowances. For example, you can give away £3,000 per year free from IHT. A couple can make £6,000 worth of gifts. You can also make any number of small gifts up to £250 to as many people as you like each year. [1]

5. Use your capital gains tax allowance

You have a capital gains tax (CGT) allowance of £12,000 for the 2019/20 tax year [2].

If you have a large portfolio of shares or investments held outside an ISA or other tax wrapper, ensure you use as much as you can of this allowance before the end of the tax year.

You may still have time to sell assets that have risen in value to avoid future capital gains tax bills. Couples have a joint allowance for 2019/20 of £24,000.

There may be various opportunities to boost your finances before the end of the tax year, and ensure you’re making the most of your money.

[1] Gov.uk: Inheritance Tax.

[2] Gov.uk: Annex A: rates and allowances.


The value of investments and any income from them can fall and you may get back less than you invested. 

No investment is suitable in all cases and if you have any doubts as to an investment’s suitability then you should contact us.

Please note that this document was prepared as a general guide only and does not constitute tax or legal advice. While we believe it to be correct at the time of writing, Brewin Dolphin is not a tax adviser and tax law is subject to frequent change. Tax treatment depends on your individual circumstances, therefore you should not rely on this information without seeking professional advice from a qualified tax adviser.

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