Happy New Tax Year!
- Tuesday, April 9, 2019
Out with the old and in with the new is very appt when talking about annual allowances. The last few weeks have been very busy as clients seek to take up their full ISA and pension contributions for the 18/19 tax year before the deadline. I do suggest not leaving it to the last minute but it always does happen.
We start a new tax year now and this offers us a great opportunity to plan early and take up this year’s allowances.
Individuals can invest up to £20,000 into an ISA either as a lump sum, series of lump sums or by up to £1,666 regular savings each month. The Junior ISA limit this year is now £4,368.
The tax-free contribution limit for pensions remains at £40,000 or 100% of annual earned income. Personal and corporate contributions up to this limit benefits from full tax relief.
The pension input period for both personal and corporate contributions now are aligned to the tax year.
The capital gains allowance raises to £12,000 for this tax year while the main residence nil rate allowance for inheritance taxes raises to £150,000 per person and the pensions lifetime allowance has increased to £1.055 million.
Chris DaviesChartered Financial Adviser
Chris is a Chartered Independent Financial Adviser and leads the investment team.