2018/19 Tax Year-End Checklist

Rob CarrollISA NewsLeave a Comment


On 5th April 2019 the current tax year ends. So, what better time than now to make the most of your personal allowances? These particular allowances are available on savings and investments.


Lock savings and investments away in an ISA and shelter them from capital gains tax. This year’s annual overall ISA allowance sits at £20,000. If you’re eligible for a Lifetime ISA, up to £4,000 of the £20,000 ISA allowance can go toward this. Who’s eligible? UK residents aged 18-40 saving for retirement or a house deposit are able to open a Lifetime ISA, and can contribute £4,000 each tax year until they reach 50 years of age. The government will top this up by 25% (a maximum of £1,000) each year.


Gifting up to £250 to individual recipients each year will receive Inheritance Tax Relief. These small gifts do not count toward £3000 annual gift exemption. If you did and were to die within seven years of making the gift then £250 (i.e. the part in excess of your allowance) of it would be added back into the value of your state for the calculation of IHT/use of the allowances available to an estate on death.

Individual, occasional gifts throughout the tax year are also permitted, without running the risk of inheritance tax being payable upon your death. An example of this would be wedding or civil partnership gifts to a maximum amount of £1,000 per person, £2,500 for a grandchild or great-grandchild and £5,000 for your child.


Individuals can contribute £40,000 during the tax year and receive tax relief – this is your annual allowance. Income tax relief on personal contributions is generally limited to your relevant UK earnings for the tax year. An investor can currently receive up to 45% tax relief when they make a personal contribution to a personal pension such as a SIPP, with 20% tax relief paid by the HMRC to the pension and any higher and additional rate tax relief reclaimable.


The Capital Gains Tax ‘annual exempt amount’ is £12,000. The rates payable on Capital Gains Tax are 10% basic rate and 20% higher rate, but on residential property, other than your home, the rates are 18% and 28% respectively. Your rate of this tax will depend on your other taxable income.


For all UK taxpayers, the first £2,000 of dividend income per tax year requires no additional tax payment – this is known as your Dividend Allowance. Dividends received above this allowance are taxed as follows: • Basic rate taxpayers 7.5% • Higher rate taxpayers 32.5% • Additional rate taxpayers 38.1%.

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