YEAR END TAX PLANNING CHECKLIST
With 5 April 2011 fast approaching, we provide a summary of topical tax saving ideas to consider now.
FAMILIES
 Transfer assets to spouse/civil partners (CP) to sell thereby making use of two CGT allowances
Transfer income-producing assets to lower tax paying spouse/CP to reduce tax in 2011/12 - utilising two personal allowances and basic rate tax bands
For those over 65 make best use of age allowances by sharing income- producing assets to keep adjusted income below £22,900 this year and £24,000 next
Gift assets to children to make use of their CGT allowances and/or Income Tax allowances (not from parent if child is under 18)
ESTATE PLANNING
Make full use of £3,000 (each) annual exemptions and any unused exemptions from 2009/10
Make use of the very beneficial normal expenditure out of income exemption
PENSIONS
Maximise the Income Tax relief available for 2010/11 by making pension contributions
Company pension contributions paid as a bonus or salary sacrifice can reduce the corporation tax liability for the company, and also save on National Insurance Contributions for both the company and employee
INVESTMENTS
Ensure you use your ISA allowances - up to £10,200 in 2010/11 (£5,100 for Cash ISAs and individuals aged 16 to 18)
Consider increasing mortgage debt on Buy to Let properties to reduce taxable rental income
Make the best possible use of Capital Gains Tax allowances £10,100 per person in 2010/11
If you are currently a basic rate taxpayer but becoming a higher rate taxpayer in the near future, consider paying Capital Gains Tax at 18% on the gain rather than 28%
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