Introduction »

Making the most of your allowances

The start of the tax year saw an increase in tax allowances for many. It is important to ensure that you take advantage and maximise your own and your family’s entitlements.

Arranging your income levels is probably more achievable in a family business, for example, by reviewing the level of salary, bonus and dividend payments and their timing to ensure that full advantage is taken.

Personal Allowance £8,105 - use it or lose it

Ensure that family members utilise their personal allowances wherever possible.

Can you have too much income?

Remember if you have income in excess of £100,000 your entitlement to the personal allowance is restricted by £1 for every £2 of income in excess of the threshold. For the current tax year this means that no personal allowance is available where your income exceeds £116,210. So when planning to take income from a family business bear this in mind.

Capital gains annual exemption

The annual exemption for capital gains tax purposes has been frozen at £10,600 for this tax year. Again, ensure that where possible all family members take advantage of the exemption as it cannot be carried forward.

Do contact us for other tax saving ideas.

Introduction »