This page contains a Flash digital edition of a book.
DO YOU WANT TO SAVE SOME TAX? T


he 2011/12 tax year ends


on 5 April so here is a timely reminder of some steps you can take to save tax, writes Karen Cooper of Chadwick Financial Management.


• Pay a pension contribution Do this by the 5 April and, within


certain limits, you will receive basic rate tax relief on your contribution - those eligible for higher rate reliefs can claim these through their tax return. Although the government has reduced the annual allowance to £50,000 from this tax year, this is still large enough for most people. And even if you pay no tax, you can still pay up to £2,880 in this tax year and the government will increase it to £3,600. You may be able to pay up to £2,880 into a Stakeholder pension for your children/grandchildren and the government will increase it to £3,600.


• Use your annual ISA allowance


You can invest up to £10,680 in the 2011/12 tax year and all future investment growth will be free from personal income tax and capital gains tax. If you haven’t used your ISA allowance yet you have until the 5 April to do so. The ISA allowance for 2012/13 has increased to £11,280.


• Jisa


This year also saw the launch of the Junior ISA (JISA). The JISA works in the same way as an adult ISA but the annual investment limit is £3,600. This limit now also applies to Child Trust Funds (CTF). You have until the 5 April to pay into your child’s or grandchild’s or, in fact, any child’s JISA or CTF as part of this year’s allowance.


Available to each child in the family each tax year, anyone can contribute to a child’s account at anytime through the year and the money is locked away until the child reaches the age of 18, giving your investment time to grow.


• Use your annual inheritance tax exemption


Give away up to £3,000 in this tax year and it falls outside your estate for inheritance tax purposes.


• Use your annual capital gains tax allowance


You can make gains of up to £10,600 in this tax year without incurring capital gains tax. So if you are thinking of selling some assets there may be a benefit in doing so by 5 April. You can “Bed and ISA” any current unit trust investments into any unused ISA allowance within the capital gains tax allowance – same fund, same provider but now with a tax free savings wrapper around it! So even if you do not have new funds to invest in an ISA, make sure you utilise your allowances to move some existing funds.


• Regular Review


A regular financial review is very important and we have the experience and tools to advise you on your existing arrangements and demonstrate the likely income your investments and pensions should provide for your retirement. Many pensions will fall short of expectations and with our advice and review we can help you plan for a happy retirement.


Call us FREE on 0800 833389 for information on tax-free ISAs and Pensions and/or to arrange a pension and investment review – Chadwick’s have been offering local, independent and trusted advice from our offices in Dartmouth for 35 years.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136