Act Now! Tax Year End is Approaching

Now is the time for individuals to focus on maximising their tax reliefs and allowances

Baker Tilly 1 March, 2013 | 6:00AM
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Morningstar's 'Perspectives' series features guest contributions from third parties such as asset managers, academics and investment professionals.

It’s not long before the end of the tax year – around five weeks to be exact - and so now is the time for individuals to focus on maximising their tax reliefs and allowances. This year is unique in that for the first time in many years, from April 6 there will be a reduction in the top rate of tax; those with income of more than £150,000 will see their top rate reducing from 50% to 45%. It is also worth remembering that there is a 60% tax rate for those with income between around £100,000 to £116,000, because of the withdrawal of personal allowances.

Taxpayers paying tax at either 50% or 60% would be wise to maximise tax reliefs which are given in full against income.  This could include pension contributions (up to £200,000 including any unused relief brought forward), Gift Aid contributions, and loss reliefs (including losses incurred on shares in some private companies).

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About Author

Baker Tilly

Baker Tilly  is an independent firm of chartered accountants and business advisers with 20+ offices throughout the UK.