Richard Curtis suggests some considerations for minimising personal tax liabilities before the end of the tax year.
For tax advisers, the start of the new calendar year will often bring thoughts of the impending end of the tax year and the actions clients should be considering to mitigate personal tax liabilities.
Income tax
Everyone will have a personal tax allowance of £12,570 unless their income exceeds £100,000, above which £1 of allowance is lost for every £2 of income. The allowance is thus lost completely when income exceeds £125,140, and income in that transitional band is, in effect, taxed at a marginal rate of 60% or more.
Consequently, taxpayers with income in this range will be eligible for an equivalent rate of tax relief for allowable payments such as contributions to charities or pension schemes – subject to