On The Spot Blogs
Tax Checklist - Use It or Lose It - March 2016
With many changes announced even before this Wednesday's Budget, it's worth checking through these five items in case you want to take action before the end of the month/5 April:
1. Pensions - up to £80k tax relief
There is a one off opportunity to get tax relief for up to £80k pension contributions (usually £40k) for this tax year only. Check whether you might be eligible.
2. Pensions - earnings over £150k reduced tax relief
A tapered annual allowance is being introduced so that tax relievable pension contributions will start to fall for people earning £150k from £40k to £10k when earnings are at £210k.
3. Stamp Duty Land Tax - increases of 3% for second residential properties
If you exchanged after 25 November 2015, remember to complete before 1 April 2016 to pay the current lower SDLT rates.
4. Rented Furnished Property - wear and tear allowance abolished
If you're planning to replace furnishings, you can save tax by claiming the last wear and tear allowance in this tax year and claiming for actual spend in the next tax year after 6 April 2016.
5. New Dividend Tax - owner managed companies increased income tax charge
You may find it makes sense to bring forward some dividends so they are paid by 5 April 2016 to save the higher 7.5% charges applying after that.
Many people are affected by at least one of the above, so looking into the details before the end of the month will be time well spent.