Every individual has a pension allowance which will allow them (or a third party) to contribute up to £40,000 in a tax year (subject to roll forward provisions). When you make a personal pension contribution it will extend the amount of income that is taxed at the basic rate. If you haven’t used your allowance you may wish to think about making a pension contribution before 5 April 2018. This is especially pertinent as more landlords will become higher rate tax payers due to the mortgage interest relief changes. It is worth noting that where your income is mainly from rental properties then you may be restricted to paying £3,600 (gross).
The Substantial Shareholdings Exemption (SSE) was introduced for disposals of shares by companies on or after 1 April 2002. It exempts companies from corporation tax on gains arising on the disposal of a substantial shareholding in another company; any losses are similarly not allowable.
Let us hope that 2018 presents opportunities to build our business interests and improve the financial position of our families. Certainly, there were many changes last year, not least the ongoing implications of the Brexit vote, that have proved to be challenging and not only for the politicians.
It is sometimes said that charity benefits the giver more than the receiver. With this in mind and the end of the tax year less than two months away let’s consider how we can make the most of tax-free charitable donations.
It is worth repeating our suggestion that highlights the cash benefit to company car drivers and their employers, of reimbursing the cost of fuel provided for private motoring. The rates have been updated for 2017-18.
This is also an appropriate time of the year to consider your capital gains tax (CGT) position if you have already disposed (or are considering a disposal) of an asset subject to CGT before 6 April 2018.