Member Article

Financial Resolutions for 2017

New Year is the ideal time for getting finances in order, particularly as some key deadlines happen in January. Below are just ten of LEBC’s simple Financial Resolutions to make the most of this critical time.

Be sure to file your tax return and pay any tax you owe, deadline for this is 31 January.

Review the income you expect to receive in this tax year - is it as tax efficient as it could be? Are you using the new allowances for dividend and interest income?

Review your capital gains and losses – the tax free allowance of £11,100 has to be used by 5 April.

Use your allowance for tax free Individual Savings Account savings investment.

If you have larger pension funds built up, consider applying for a higher lifetime allowance.

Up to £1.5 million may be available but only till 5 April when it drops to £1.25 million and without protection £1 million.

If you have taxable income over £100,000 there may be tax benefits in making additional pension contributions or gift aid donations.

Parents of children under 16 (or 20 if still in education), receive child benefit, a tax free benefit unless one of you has income of £50,099 or more. Making pension contributions and charitable gifts can restore eligibility for this.

Review your pension savings. Especially important for higher earners £110,000 and above whose pension savings tax allowances are being cut back.

If you are already over State retirement age, you have a one off opportunity to buy an additional State Pension of up to £25 per week but need to act before 5 April.

Review the gifts you have made over the tax year and consider whether you wish to make any additional gifts.

LEBC’s Kay Ingram said, “With the end of the current tax year only three months away now is an obvious and prudent time to do a quick review of your finances. Some allowances are available on a use it or lose it basis, for example, Capital Gains Tax. Others such as pension reliefs can be carried forward for up to three years and gifts for Inheritance Tax up to one year. This tax year has seen the introduction of new allowances for savings interest and dividends and the restriction of pension tax relief for high earners, so there are opportunities available now to save tax if you can organise your affairs before the tax year end.”

This was posted in Bdaily's Members' News section by LEBC Group Ltd .