Give Children and Grandchildren a Head Start on Saving
Parents and grandparents can gift up to £3,000 per person annually, free from Inheritance Tax (IHT), or up to £6,000 per couple. If they haven’t used last year’s exemption, they can carry it forward, allowing them to gift up to £12,000 this year.
These gifts can be used to fund a Junior ISA, which permits up to £9,000 in tax-free savings per year, with the child gaining full access at age 18.
Andrew Tricker, Director at Lubbock Fine Wealth Management, advises, “Junior ISAs and gifting are straightforward, tax-efficient ways to pass on wealth, but you need to act quickly to make the most of this year’s allowances.”
Couples Can Work Together to Reduce Tax Bills
Couples can lower their overall tax burden by transferring savings or investments to the partner with a lower income.
Andrew Tricker, Director at Lubbock Fine Wealth Management, explains, “Making full use of both partners’ ISA, pension, and tax-free allowances is an easy and effective way to improve tax efficiency.”
Maximise Tax Relief on Pension Contributions
Contributing to a pension remains one of the most tax-efficient ways to save for the future. By taking full advantage of available tax relief, individuals can significantly enhance their retirement savings while reducing their taxable income.
