With the end of the tax year fast approaching (5 April), you should assess your current tax situation and utilise the reliefs and allowances available.
Here are a few tax quick wins you can consider to help reduce your liabilities now and in the future:
Inheritance Tax (IHT)
Each tax year, individuals can give away up to £3,000 worth of assets or cash without adding it to the value of their estate, referred to as your ‘annual exemption’.
You can carry your unused annual exemption over to the next tax year.
Capital Gains Tax Allowances
Capital Gains Tax (CGT) is chargeable when you sell or dispose of an asset and make a profit. You pay tax on the amount you gain from the sale or disposal.
UK residents can make a certain amount of gains each tax year before being charged CGT, known as the Capital Gains Tax Exemption.
The 2022/23 amount is £12,300 but will fall to £6,000 for 2023/24 before being reduced to £3,000 for 2024/25.
You should ensure that you are using your CGT Exemption before the end of the tax year and plan disposals to take advantage of the current higher rate.
