As the tax year concludes on April 5, it’s essential to ensure your financial affairs are in order to take advantage of tax-efficient opportunities. Whether you have £100 or £10,000 to spare, there are actions you should consider now to maximize the potential of your money!
The annual allowance for your Individual Savings Account (ISA) is £20,000, and it does not carry over to the next tax year. If you have not utilized your limit this year or have excess savings in a regular account, it is advisable to transfer funds into your ISA.
The personal allowance is a use-it-or-lose-it opportunity, so ensure you move funds before April 5 as it resets on the 6th. Remember to transfer between ISAs rather than withdrawing and re-depositing to avoid affecting your personal allowance.
WHATSAPP GROUP: Receive money news and exclusive deals directly to your phone by joining our Money WhatsApp group here. Our community members enjoy special offers, promotions, and advertisements from us and our partners. You can opt out anytime. For more information, view our Privacy Notice.
NEWSLETTER: Alternatively, subscribe to the Mirror’s Money newsletter here for expert advice and exclusive shopping offers delivered to your inbox.
If you have maximized your allowance or maintain a standard savings account for your child’s future, you are missing out on a tax-efficient saving method for their future. Each child is eligible for a Junior ISA with a personal allowance of up to £9000 annually.
The funds you deposit into their ISA belong to them, and you cannot reclaim them later. However, if you wish to gift your child a lump sum on their 18th birthday for educational or housing purposes, it is an ideal way to provide them with a financially secure start to adulthood. While they gain control of the account at 16, they cannot withdraw funds until they reach 18.
You can assist family members with financial gifts regardless of their age. Each year, there are specific allowances that enable you to give money to loved ones without it being subject to Inheritance Tax if you pass away within seven years of the gift.
You can gift up to £3000 annually or individual amounts of £250, and unused allowances can be carried forward. Additionally, there are opportunities for one-time gifts for weddings, such as £5000 for a child, £2,500 for a grandchild, or £1000 for a wedding or civil partnership. This is separate from the annual £3000 gift allowance.
For regular payments, you can provide support tax-free as long as it is