Check your tax code each year (the numbers and letters on your payslip). If you're on the wrong code, you may be paying too much tax.
- Capital gains tax (CGT) allowance
Remember that capital gains in the 2016/17 tax year under £11,100 are tax-free. Married couples and civil partners who own assets jointly can claim a double allowance of £22,200. From 6 April 2016 CGT is charged at 10% if you are a basic-rate taxpayer (except on property gains, where the rate is 18%) , and 20% if you pay tax at a higher rate (except on property gains, where the rate is 28%). For 2015-16, the tax-free allowance was also £11,100 per person.
Don’t miss the 31 October deadline if you want to make a paper tax return. You can do your tax return online up to 31 January, but paper tax returns need to be in three months earlier than online tax returns to avoid a £100 fine.
- Annual Investment Allowance
If you are a landlord or run your own business, take advantage of the annual investment allowance (AIA) to claim for capital expenditure on items such as tools and computers. From January 2016, you can claim relief on up to £200,000 a year. In 2015 the limit was £500,000.Marriage allowance
From 6 April 2016, married couples and civil partners can transfer £1,100 of personal allowance from the lower earning partner to the higher earner, saving them up to £220 tax. Only available if the higher earner is a 20% taxpayer- no transfer possible is they are a 40% taxpayer.
Last updated:
May 2016
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Updated By:
MGT Research Team
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