As the year comes to an end and festive jumpers are pulled out for the season, worn with a flourish and put away for another year – it’s also a good moment to give your tax planning a quick once-over.
It doesn’t have to be overly complicated, think of it as a year-end tidy-up to get the house in order. A quick review now could mean you head into the New Year feeling a little lighter mentally (as well as financially!).
A good place to start is with the reliefs and allowances that reset each tax year. Spring is not as far away as it seems. ISA limits, pension annual allowances, and personal savings or dividend allowances all fall into the “use it or lose it” category. If you haven’t made the most of these yet, reviewing them now can help you plan for some valuable tax savings before the new tax year kicks in on 6 April.
Don’t overlook the smaller exemptions. These include the annual £3,000 gift allowance for inheritance tax. Making charitable donations can also give you tax relief. These small touches can make a big difference to your financial planning, with everything looking (and costing) a little better.
A few thoughtful tweaks before the year ends can help you to wrap up the year feeling organised, efficient and a bit more in control of your finances.
