12 Top Tax Tips to Easter – #7 Savings and Investments

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Good planning and careful timing are critical if you want to maximise tax reliefs or minimise the tax bill on a transaction or investment, and to avoid falling foul of the system of penalties and interest levied by HM Revenue & Customs (HMRC).

The run-up to Easter is the perfect time to consider tax planning opportunities and to put in place strategies to minimise tax before the new tax year starts on 6th April 2016. That’s why we have launched a series of 12 top tax tips to help you mitigate your tax bill.

Our tax tip #7 explains how to use your savings and investments to reduce your tax bill.

#7 Savings and Investments

  • There are attractive income tax reliefs (of between 30% and 50%) available for investments in Venture Capital Trusts (VCT), Seed Enterprise Investment Schemes (SEIS) and Enterprise Investment Schemes (EIS). Individuals can get up to £60,000 income tax relief via a VCT, £50,000 from a SEIS or £300,000 from an EIS.
  • The ISA investment limit for 2015/2016 & 2016/17 is £15,240 per annum and you can split the amount you pay in between cash and stocks & shares.
  • From 6 April 2016, the first £1,000 of interest income will be tax free (£500 for higher rate taxpayers). Interest will also be paid gross so that non-taxpayers no longer have to reclaim tax deducted at source. Additional rate (45%) tax payers will not benefit from this new allowance.

Tax is a complex matter, so we recommend that professional advice is sought when considering any of the above. Our highly qualified and experienced tax team would be happy to discuss your tax affairs with you.

If you have any questions regarding your tax affairs, please do not hesitate to contact our tax team on 01491 579740.