The current tax year will end on 5th April 2010.

The next tax year, 2010/11, sees the introduction of a new 50% tax rate and the removal of Personal Allowances for some.

Therefore year end tax planning has become even more crucial.

Investment Ideas:

• ISAs – Have you used your maximum investment entitlement? (Don’t forget the new limits for the over 50s)
• Pensions – New rules apply – are you affected?
• Investment opportunities – Review current structure and possibly consider Enterprise Investment Schemes or Venture Capital Trusts with tax breaks of 20% and 30% respectively

Tax Planning Ideas:

• Capital Gains – Annual Exemption of £10,100 – use it or lose it!
• Capital Gains Tax rate is 18% – but for how long?
• Investments – Consider realising investments, bond gains or closing desposit accounts to crystalise interest
• Inter-Spouse Transfers to maximise Capital Gains Tax and Income Tax rates and allowances Inheritance Tax – Have you used your maximum gift allowances for 2009/10?
• Consider advancing payments of dividends or bonuses before 5th April 2010
• Review if you would benefit from a change in accounting dates to use overlap relief, or incorporation

To discuss any of these points further please contact us.

Please feel free to pass these topical tips on to your friends and contacts.