Maximise your tax allowances and reliefs for the 2021/22 tax year

Published: March 2022

As we approach the end of the tax year, now is the time to review your financial affairs to ensure that you have taken advantage of all reliefs appropriate to your circumstances and considered the full range of planning opportunities.

ISAs

Individual savings accounts (ISAs) are an excellent, low cost and tax-efficient investment*. The maximum personal allowance is £20,000 or £9,000 for a Junior ISA (JISA)**.

• You must invest by 5 April 2022 for it to count in this tax year – if you don’t use the allowance, it will be lost.

• There are a wide range of different cash and stock and shares ISAs available – as well as Innovative Finance ISAs and LISAs.

We can help you make the right decision for you, your family, and your aspirations – please talk to us for advice.

We will take into consideration your overall financial position, attitude to risk, capacity for loss and goals and objectives.

Pensions

• You can contribute up to £40,000 this tax year (5 April 2022). This can be increased if you did not use up your allowances in the preceding three years and were a member of a qualifying pension scheme.

• Unused allowances from 2018/19, 2019/20 and 2020/21 can be brought forward and used in 2021/22 (conditions apply)***.

Please contact us if you want any help with tax-year end planning.

*Eligibility for ISAs is dependent upon you meeting the various criteria, i.e. 16 or over for a Cash ISA, 18 or over for Stocks and Shares or Innovative Finance ISAs, and 18 or over but under 40 for a LISA. You must also be a UK resident / crown servant or the spouse / civil partner of one.

**A Junior ISA (JISA) can be opened for a child under 18 who is living in the UK and who doesn’t hold a Child Trust Fund (CTF). A JISA can be opened if the CTF funds are first transferred to a JISA and the CTF closed.

***The maximum amount on which tax relief can be claimed is based on your relevant UK earnings and personal contributions.

Disclaimer
Opinions constitute our judgment as of this date and are subject to change without warning. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.

Past performance is not a reliable indicator of future results and forecasts are not a reliable indicator of future performance. Where an investment involves exposure to a foreign currency, changes in rates of exchange may cause the value of the investment, and the income from it, to go up or down.

The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.