There are four months to go until the new tax year, but if you earn £150,000 or more and will be hit by the 50% income tax, it is worth taking a few simple steps to save money now, says Jennifer Hill in The Sunday Times.
First, if your deposit accounts pay interest only once a year and the due date falls after 5 April, it may be worth closing the account “so that interest accrued will be taxed in the current tax year”.
Also consider cashing investment bonds and gilts before then.
Next, if your spouse doesn’t work, transfer income-producing assets to them in order to take advantage of their personal allowance. A £500,000 portfolio producing 5% (or £25,000 a year) would create a tax bill of £12,500 a year from 2010-2011. But gift it to your spouse and the first £6,475 would be tax-free and the remainder taxed at 20% (ie, produce a tax bill of £3,705).
Lastly, if you have a holiday let (as defined by HMRC), this is the last year in which you can offset expenses against income, so get any repairs done before 6 April.