The months of January, February and March are a good time to take stock and make plans for the
year ahead. It is also a good time to get to grips with solutions that help to mitigate the impact of tax
and capitalise on opportunities to grow and protect your wealth.
What can you do?
Making sure this year’s ISA allowance doesn’t go to waste is one important step towards helping
create wealth for the future. For example, parents might want to use their own allowances and then
start investing in a Junior ISA for a child. Annual limits (£20,000 and £4,368 respectively) should be
maximised by 5 April 2021, as any unused amounts cannot be carried forward.
What about pensions?
Chances are there are also things you can do to bring your retirement goals closer to fruition. So,
maybe think about investing a lump sum or increasing monthly payments into your pension plan.
Thanks to tax relief, your contributions are boosted by 25% immediately. If you pay more than the
basic rate of Income Tax, you may be able to claim extra tax relief through your self-assessment tax
Finally, it could be a good time to think about legacy planning. If your estate is likely to be hit by a
future Inheritance Tax (IHT) bill and you can afford to give some money away, now could be the
ideal time to do it. You can give away up to £3,000 each tax year without it being added to the value
of your estate for IHT purposes. You can also make use of any unused gifting allowances from the
2019/20 tax year.
As the end of the tax year approaches, it’s a good idea to ensure you are making the most of tax-
saving opportunities that may be lost after 5 April. I would welcome the opportunity to spend some
time explaining how you can get maximum advantage for this year and the years to come.
For more information and to get expert financial advice and support, don’t hesitate to contact David directly on D.firstname.lastname@example.org.
For more information on David and his experience, please visit www.sjpp.co.uk/swfinancialplanning