A few ways to save on tax

19 10 2009

ISA tax allowances

You can invest £10,200 each year, up to £5100 tax free in cash and the remainder in stocks and shares. If you are over 50, this came into effect on 06.10.2009, and if you are under 50, it will come into effect on 06.04.2010.

Interest on savings

Non tax payers can complete an R85 form on each non Isa savings accounts and interest will be paid free of tax deductions.

Personal allowances

To save on income tax, married couples should transfer savings into the lower earners name if that person is a non-taxpayer or in a lower tax bracket.

Tax codes

Check that your tax code is correct. Coding notices go out in February and March but mistakes are made and you could pay too much or too little.

Investment allowances

Investments into venture capital trusts and enterprise investment schemes carry attractive tax breaks, but bear in mind these are high risk investments.

Offset investment losses

Selling shares at a loss can make sense when you offset against gains elsewhere. If you have no gains then register any losses on your tax return so you can offset them against future profits.

Inheritance tax

Before inheritance tax kicks in at up to 40%, you can make gifts totalling up to £3000 a year, and larger gifts if you live for seven years after making them.

Why not check out the Best Accountants in Sussex?Tax Accountant Make sure you’re aware of the new National Minimum Wage Rates for 2011 – they come into effect in October 2011.




One response

8 06 2010
ISA Accounts | ISA Accounts

[…] A few ways to save on tax […]

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