Andrew Thomas
- Position: Partner OCIFA
- Phone: +44 (0) 1753 551111
- Fax: +44 (0) 1753 550544
- Email: Andrew.Thomas@ouryclark.com
As the end of the tax year approaches, we need to ensure you maximise the tax-efficient allowances available to you.
ISA Allowance
An ISA remains one of the most tax-efficient methods of investing, but if your full allowance is not used within the tax year, this valuable opportunity is lost for good.
The ISA limit has increased, for those over 50, to £10,200 for investment before 5th April (the limit for under 50s remains at £7,200). With signs that the markets may be recovering, here is a chance for you to invest early and be in a prime position to benefit from any upturn. Remember, the sooner you invest, the more time your investment has for growth.
We can recommend a suitable investment fund for you to use before the end of the tax year, to complement your existing holdings and investment risk profile.
Pension contributions
Contributions to registered pension plans receive income tax relief at your highest rate of income tax – that’s a 40% discount for higher rate taxpayers.
With the recent changes to pensions legislation capping the tax relief on pension contributions for higher earners, we feel it is important that clients make full use of pension funding whilst it remains attractive to do so.
I can advise as to which pension contract for you to use, and how the money should invested.
Venture Capital Trust – VCTs
With banks seemingly unwilling to lend to small businesses as they try and repair their battered balance sheets, venture capitalists are looking to take advantage of the situation by offering an alternative source of finance. Venture Capital Trusts offer investors 30% income tax relief on qualifying investments as long as the investment is held for at least 5 years.
VCTs are higher risk than ISA investments and should be viewed as long term contracts. We have picked out a selection for consideration, some of which look to protect your capital at least in part.
Deadlines
As the Easter bank holidays fall at the end of the tax year, to make sure you meet the deadline we must receive your completed application and cheque by Monday 29th March 2010.
Please contact me to see how you can benefit from these tax allowances before the end of the tax year. We can recommend planning based on your current financial position to ensure it is suitable for your own individual needs.
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