As the end of the tax year is drawing near here are a few strategies that can be considered in order to maximise wealth.
ISA’s – the maximum annual ISA allowances which can be invested is £20,000.
LISA’s – A Lifetime ISA can be used either for buying your first home, or for using in retirement. You must be aged between 18-40, and you can invest up to a maximum of £4,000, and the government will add a 25% bonus, plus annual interest.
Junior ISA’s – Up to £4,128 can be invested on behalf of someone aged 18 and under.
Gifts – You can utilise your annual exemption for gifts of up to £3,000, and bring forward last years allowance also if this was not used. A total of £6,000, which could save £2,400 Inheritance Tax. Other options include a parent giving a gift for a marriage of up to £5,000, with a grandparent being able to give £2,500.
Dividends - As a limited company be sure to pay out £5,000 if profits allow. the tax free allowance is reducing to £2,000 this year.
Please consider the above for your thoughts only, and not as advice. Circumstances differ and advice from a qualified professional would need to be sought in all individual circumstances.