The clock’s ticking to shield your savings and investments from the taxman for the 2016/17 tax year, which ends on Wednesday 5 April. But if you’re quick, there’s still time to to take advantage of tax relief that could save you thousands of pounds. Here’s a reminder of the key allowances to make the most of before they disappear – and what the experts have to say about them.
Pensions
‘You should look to maximise your pension contributions before the end of the tax year,’ says Patrick Connolly, a certified financial planner at Chase de Vere. ‘Pension contributions benefit from initial tax relief at somebody’s marginal rate of income tax. This is particularly beneficial for higher and additional-rate income taxpayers who will benefit from a boost of 40 or 45 per cent to what they pay in.
‘There can be other benefits of making pension contributions including pushing your overall net income below a level which protects your personal income tax allowance, which reduces for incomes over £100,000, or entitlement to child benefit, which reduces for incomes over £50,000 a year.
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