Pre Year End Tax Planning

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The end of the tax year is fast approaching and now is the time to review your financial affairs to ensure that you take advantage of the tax reliefs that are available for 2012/13. Below are some of the available opportunities:

Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT )

For 2012/13, EIS relief is available at a rate of 30% on qualifying investments of up to £1m. There is also opportunity to carry back relief to the previous year and CGT deferral is also available if you have Capital Gains that you wish to shelter. VCT relief is also available for qualifying investments of up to £200,000.

Whilst the tax relief is attractive, it is more important to select the right investment opportunities. Throgmorton do not provide financial advice but we do work closely with such providers. Attached are details of three EIS schemes that are provided by Citimark. If these are of interest, or you would like more information regarding EIS/VCT investments generally, please speak to your usual Throgmorton contact.

Individual Savings Account (ISA)

The maximum ISA investment for 2012/13 is £11,280 of which the maximum cash element is £5,640. In addition, the junior ISA limit is £3,600. To take advantage of this year’s allowance, the investment must be made before 5 April 2013.

Pension Premium

6 April 2013 sees the top rate of tax fall to 45%. Subject to the annual and lifetime limits, premiums paid before 5 April 2013 should qualify for relief of up to 50% and for those whose incomes are slightly above £100,000, the limit for full personal allowances, the savings can be higher. Calculation of the maximum relief available is complex as it depends upon the annual allowance, unused relief brought forward and the lifetime allowance. It is also further complicated by Pension Input Periods.

If you are interested in making pension contributions, are concerned about your existing pension investment performance or would like to speak to a pension expert, please speak to your usual Throgmorton contact.

Financial Review

Throgmorton and Citimark would welcome the opportunity to meet you to review your financial affairs generally. If this would be of interest, please speak to your usual Throgmorton contact. 

20 February 2013

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About Throgmorton: Throgmorton is one of the leading companies specialising in the provision of financial and administrative outsourcing to the UK SME financial services sector.

The information in this notice is intended for general guidance only. Throgmorton does not accept any responsibility for losses incurred to any person acting or refraining to act as a result of the information in this notice. Advice should be taken in the context of specific circumstances.

Copyright 2012 Throgmorton UK Limited. All rights reserved. Throgmorton is a trading name of Throgmorton UK Limited a company registered in England and Wales (company no 3853848) having its registered office at 4th Floor, Reading Bridge House, George Street, Reading, Berkshire, RG1 8LS.