Tax relief on your savings - use your allowances before they are gone

Even in these extra-ordinary times, the government can still help us to get more from our savings!

The Taxman allows up to 40% tax relief on contributions that you make into your pension. Furthermore, you can make a cash investment into your pension now and then ask us to invest it for you once the markets have become less volatile.

You have an annual ISA allowance of £7200 which can grow free of tax and one day provide you with a tax free income.

If you are unsure about whether you have taken advantage of either your pension or ISA allowance, please get in touch and we will be pleased to help. Remember, once you reach 6th April the allowances for this year are gone forever.

Tax Tip

If you hold windfall shares from when many insurance companies de-mutualised, or banks merged, these may currently be low in value and the dividends payable even smaller. Nevertheless, they must still be included on your annual tax return, which can be time consuming for you, or expensive if using the services of an accountant.

Why not bring those shares into your Transact portfolio? They will automatically be valued daily, as part of your main portfolio… which also means that any tax due on dividends will simply be added to your annual taxation statement. We can also arrange for these shares to utilise your annual ISA allowance (£7,200 each year) which means you would no longer have to declare the shares to the Taxman, or the dividends paid against them.

If your shares are valued at more than £7,200 we will simply use up each year’s ISA allowance until all of your shares are ISA wrapped. This will also protect them from future Capital Gains Tax liability.

Please don't hesitate to get in touch if we can help with any of the above.