Saturday, Apr 10th

Last update:07 Apr 11:37 GMT

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End of Tax Year Checklist

Before the 5th April 2010, make sure you use the personal tax reliefs available to you, and make tax efficient investments to reduce your tax liabilities.
Remember, it’s a case of “use it or lose it”!
Check your tax code
Having the wrong tax code will cost you money: those particularly at risk include students, part-time working mothers and pensioners not taking advantage of the higher personal allowances available from the age of 65.
Inheritance Tax
Consider whether it is appropriate to start giving away cash: you can give away up to £3000 each year which will not count towards your total estate, and is therefore ignored for Inheritance Tax purposes. Also, if last year’s exemption has not been used, this can be included before 5th April. This could allow a couple to get up to £12,000 out of their estate.
Income tax
Consider giving a “gift” of an income generating asset to your spouse, making use of his (or her) personal allowance. However, such a gift made now will start generating income (and thus tax savings) in the year 2010/2011.
Capital Gains tax
Don’t forget to make use of the Capital Gains Tax annual exemption of £10,100 for 2009/2010 by selling shares or other assets before the 5th April deadline.
Use your ISA allowance
For 2009/2010 you can invest up to £7,200 in your ISA, up to £3,600 of which can be in cash. If you are over 50, the limit is £10,200, and up to £5,100 of which can be cash. Savings in ISAs grow free from the taxman’s clutches.
Pension contributions
You can make contributions to your pension qualifying for tax relief in any year, limited to 100% of your “relevant earnings”, subject to an overall limit (the “annual allowance”) of £245,000 for 2009/2010.
Beware though, higher earners (over £130,000 pa) are subject to special transitional rules further restricting the relief they can claim.
Furnished Holiday Lettings
Individuals who operate furnished holiday letting businesses (FHL) will lose their tax favoured status from 6th April 2010.
The benefits of sideways loss relief, and capital allowances for new acquisitions will both go. The existing capital allowances pool will be available for the client's UK property letting business that continues into 2010/11 and beyond. However, if the letting business is to continue, the owner could maximise their capital allowances by timing purchases of capital equipment used in the FHL business before 6 April 2010.
For help in any of these matters, please phone Owen Kyffin on 01295 220914 or e mail him on This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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