Individuals & trustees: have you maximised your tax planning?

The weeks leading up to the end of the tax year present opportunities for individuals and trustees to consider what steps might be possible to reduce tax liabilities for the current year. It is important to act now: action is normally required before 5th April.

Now is also a good time to look forward to the new tax year and start planning accordingly. Many changes to tax rules take effect at the beginning of the new tax year, so it is important to understand what impact these changes may have and plan your tax affairs accordingly. With tax law, the economy and your own circumstances constantly changing, it is essential to have a tax planning strategy in place.

Ask yourself:

• Do you know how much tax will be payable for the current year?
• Do you understand what reliefs and allowances you are entitled to, and have you used them fully in respect of the current year?
• Do you understand what changes to tax law may come into effect at the end of the current year, and what opportunities or problems these may present to you? (If you have overseas assets, you will also need to consider how changes in those countries will affect you too).
• Have you checked whether time limits for claims that may be available to you might elapse at the end of the current year?
• If you are a trustee, have you considered the above in relation to the trust?
• Have you spoken to a financial adviser to review your current year position and plan for next year?

If your answer is no to any of these questions, then you should act now. If you do not act now, you may be unable to undertake relevant tax planning, waste available tax reliefs, prejudice forward tax planning, and you may ultimately miss out.

Click here to view our full tax planning leaflet with planning ideas for individuals and trusts.