Contact Kirk Rice

Kindly complete the form below to send an enquiry. Your message will be sent to one of our Accountants or Financial Planners who will respond to you within 24 hours.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service

Request Appointment

Please complete this form to request an initial appointment at our cost.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service

Kirk Rice Blog

Tax Reliefs To Use Before 5 April 2022- Don’t Miss OutWritten on March 3, 2022 by Kirk Rice LLP

Tax Reliefs To Use Before 5 April 2022- Don’t Miss Out

With the end of the tax year approaching, we set out below some tax reliefs that you might wish to utilise to benefit from the tax savings that may arise before it is too late.

Potential Tax Reliefs

1 Each person has an annual exemption of £12,300 to set against their capital gains on the sale/gift of property, shares and other chargeable assets. This allowance cannot be carried forward or transferred to another person. So if you are thinking of selling or gifting assets and have a spouse/civil partner, speak with us to see if it is worth transferring the asset to your spouse/civil partner before making any disposals to utilise their annual exemption in addition to your own.
2 Use up your £3,000 IHT gift exemption for the current year (2021-22), and also use the same exemption from the previous year (2020-21), if you have not already done so. The exempt amount may be carried forward one tax year only, after which it is lost. With this in mind, Kirk Rice LLP can offer advice concerning inheritance tax planning, and if this is something you would like to explore, please contact us.
3 Review your pension contributions (including those made via salary sacrifice and those made by your employer) to ensure that you can make full use of the pensions annual allowance. Remember that if you were registered in a UK pension scheme in the three years prior to 2021-22, you have the opportunity to use up any unused annual allowance from those earlier years after using the allowance from the current year. The carry forward is a ‘use it or lose it’ relief and this year is the last year in which you can use up the unused Annual Allowance from 2018-19. Also bear in mind that if your income falls between £100,000 and £125,140, you are being taxed at the effective rate of 60% due to the loss of the personal allowance of £1 for every £2 of income above £100,000. Pension contributions may help to claw back some of the lost allowance. This is a complex area so; please speak with us or your IFA if you are unsure how much annual allowance is available to you.
4 Non-earners and children can make net pension contributions of up to £2,880 in the year. The government will add £720 to this level of contribution, so the pension fund’s value increases to £3,600 gross.
5 Contribute to your ISA. The ISA allowance for 2021-22 is £20,000, and for Junior, ISAs is £9,000. Remember that income or disposals within the ISA wrapper will be tax-free, but of course, you should check with either our Financial Services Team or with your IFA to ensure that this is a wise investment to make.
6 Make charitable donations via Gift Aid. If you are a higher rate or additional rate taxpayer, you will gain income tax relief on your donations via your self-assessment tax return.
7 If you made capital losses in 2017-18, which you did not notify HMRC about, or you overpaid tax in that year, you have until 5 April 2022 to submit a claim to HMRC to notify them of the loss or reclaim the tax overpayment, after which the claim will be out of time.
8 For Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS) or Venture Capital Trust (VCT) investments, consider making these sooner rather than later to generate an earlier tax repayment or to carry back the relief to the previous tax year. Remember that such investments carry risks, and you could end up losing your investment, so you should consult our Financial Services team, or your own IFA before investing in such companies.

If you would like to discuss what tax reliefs you may be able to access call 01344 875 000 to arrange an appointment or email info@kirkrice.co.uk.

Please note that information is given for general guidance only and specific advice should be taken before acting on any suggestions.

Do you want to keep up to date with tax and financial planning issues?

Sign up to our fortnightly newsletter to receive similar articles on topics including personal tax, business accounting, investments, pensions and financial planning straight to your inbox.