Kickstart Your New Year…

…With Our Top Ten Checklist

Accountancy Matters with AMMU

The New Year is the perfect time to get financially savvy and prepare for your future. We’ve put together a checklist to start the year on the right financial foot. 

  1. Pay what you can into your pension – especially if you are dreaming of early retirement. If you are aged over 55, take advice about the options for drawing your pension savings.
  2. Ensure you are making the best use of ISA/JISA Allowance, tax-free savings and dividend allowances. 
  3. Use your gifting allowances to avoid unnecessary Inheritance tax liabilities. 
  4. Avoid unnecessary Capital Gains tax liabilities by utilising your annual exemption in a tax efficient way.
  5. Capitalise on Capital Gains Tax: 
  • if you are selling a home, check if you have Capital Gains to pay or if you are entitled to any Capital Gains tax reliefs such as Principal Private Residence relief 
  • Reduce potential CGT by transferring your company shares between you and your spouse.  

6. Utilise your personal allowance in full: eligible individuals can transfer 10% of their personal allowance to their spouse to reduce their tax liability (subject to both individuals meeting the prescribed criteria).

7. Transfer income to your partner to:

  • maximise the tax-free savings and dividend income limits.
  • minimise exposure to high income child benefit charge.

8. Consider the timing of dividends and bonuses to ensure you are being tax efficient and utilising tax allowances in full. 

9. Plan your capital gains to utilise available capital losses. 

10. Explore Family Investment Companies or Trusts for tax-efficient wealth distribution to your loved ones.

Remember not every action is relevant to your unique circumstances so always seek expert financial advice in the first instance. 

Ammu Chartered Accountants
10 Newton Terrace
G3 7PJ

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