Tax tips were consdiered by Chantal and what tax allowances are still available for you to use before they are lost at the end of the tax year on the Business Show on Ridge Radio on Friday 10th March. This a weekly show every Friday morning at 9am whereby Chantal discusses a different topic each week to help business owners and entrepreneurs grow their business including guest speakers.
Capital gains tax allowance
The current allowance is £11,100. This is not transferable and lost at the end of this year. If you hold stocks or shares it may be beneficial to sell them at a gain and transfer them to an ISA or a SIPP.
There is an annual gift allowance of £3,000 per estate which you can give away from your capital each year. This allowance can only be carried forward for 1 year.
Investments: VCT, EIS, SEIS
These types of investments are long term but allow you the opportunity to invest funds in small growing companies. The tax advantages can be very high.
This is the easiest way to save money and shelter it from income tax and capital gains tax. The allowance for 2016/2017 is £15,240 and this allowance expires on 5th April 2017. If not used this allowance is lost.
A junior ISA limit this year is £4,080 and the rules are very similar to that of an adult ISA and are eligible for all children.
The pension allowance can be carried forward for a period of 3 years, but if not used will be lost. A pension is a tax-efficient way to save for retirement.
The personal allowance is a tax free lump sum of £11,000 which if not used is lost. A part of it is transferable if you and your spouse are not higher rate tax payers.
You can listen to Chantal’s radio show via the station website www.ridgeradio.co.uk or using the “tunein” app on any smart phone or tablet.
To listen to this week’s show with Jerry Cheshire, use the link www.mixcloud.com/chantalbaker.
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