In order to make sure you don’t miss out on any tax reliefs, AIT Accountants are here to help you determine which ones you qualify for.
You may be eligible for a number of tax reliefs that you’ve never heard about:
Spouse’s Personal Allowance
This option is available to you if your spouse is unable to work or earns less than the authorised personal allowance of £12,570. Using this approach, you may get a tax reduction of up to £250.
Tax-Free Pension Allowance
Retired pensioners may be exempt from paying income tax on their pensions, but it’s not a guarantee. In order to be taxed on your pension income, it must exceed £40,000.
Capital Gains Allowance
The difference in the value of a property between the time it was purchased and the time it was sold is referred to as capital gains/losses. In the event that your property is sold at a greater price than you paid for it, the difference is considered a capital gain, which is taxed.
Nonetheless, the UK tax system offers property owners some protection in the shape of the capital gains allowance, which this year is set at £12,300. As a result, your capital gains tax will be assessed on the entire increase minus £12,300. You won’t owe capital gains tax if your gain is less than or equal to your allowance.
In addition, if you and a partner own the property, your allowance will be doubled.
Have you lately received a dividend on any stocks in which you have invested money? If so, you’re in luck, since you may deduct a part of your dividends from your taxable income using the dividend allowance. Last year’s dividend tax reform exempts you from paying taxes on the first £2,000 of your dividends.
As an added benefit to your personal allowance of £12,570, you may consider this money a perk or perk-plus. Please keep in mind that the allowance amount may vary each year, so be sure to check it out well in advance of the due date.
Individual Savings Account Allowance
In order to avoid paying taxes, you may put £20,000 in an investment account with a bank. If you’re married, you may put up to £40,000 into the account and not be taxed on the investment.
However, if you make money from your savings, you’ll have to pay taxes on that money.
Rental income from land or property entitles you to a £1,000 property allowance. E.g. If you own and rent out three homes, you’ll be eligible for a £3,000 property allowance.
For those who own property in a joint venture, they’ll also get £1,000 apiece.
If you have any questions, please don’t hesitate to contact us at email@example.com. We look forward to hearing from you and answering any questions you may have.