Marriage Allowance
If your spouse or civil partner either has no income or has income which is below their personal allowance, then your spouse or civil partner can transfer an amount of their personal allowance to you if you are not a higher rate taxpayer. This allowance is £1,260 and is worth £252 in the 2023/24 tax year. A claim can also be made for the 2021/22 and 2022/23 tax years to obtain a tax refund as well as a transfer for the current 2024/25 tax year.
Child Benefit
If you, your spouse, civil partner or co-habiting partner has income of more than £50,000 and child benefit is being received, then entitlement to child benefit will be affected and some or all of this may be clawed back through your Tax Return or whoever is the higher earner.
Charitable donations
If you make charitable donations through gift aid, then these need to be included in your Tax Return. Although basic rate tax relief is received at source, if you are a higher rate taxpayer additional relief will be due.
Payments made on or after 6 April 2023 can only be included in the 2023/24 Return if your Return is sent to HMRC before the filing date (not allowed in an amended 2023/24 Tax Return).
Payments to Personal Pension Schemes (Not Company or Employer Provided Schemes)
Although tax relief for payments into a personal pension scheme is received at source, these need to be included in your Tax Return to obtain higher rate tax relief if you are a higher rate taxpayer. If you are a higher rate or additional rate taxpayer and are making contributions into an occupational or employer’s pension scheme through payroll, you may not be receiving the tax benefit on the contributions at the highest rate of tax. Please provide us with information about these contributions for our review.
Pension Drawdown
If you have drawn down on your pension, this may have an impact on your tax liability and therefore may need to be included in your Tax Return.
Student Loan
If you have an outstanding student loan, this may have an impact on your tax liability and therefore needs to be included in your Tax Return.
Capital Assets
If you have acquired or disposed of any capital assets, such as shares, property or gifted any assets, these may require disclosure in your Tax Return. As you are already aware, from 6 April 2020, anyone selling a residential property with gains and proceeds exceeding the capital gains annual exemption limit must report their gains online and pay the tax within 60 days (previously 30 days) of completion.
Loan interest and finance cost relief on residential rental property
The tax relief on loan interest and finance costs paid relating to residential rental properties has been restricted to the basic rate of Income Tax. It started in 2017/18 and was phased in to 2019/20. It is now fully in place from 6 April 2020.
The new deemed domicile provisions
The new deemed domicile provision was applicable from 6 April 2017 for individuals who have been non-UK domiciled for tax purposes but are long term UK residents.
POTENTIAL SOURCES OF INCOME AND OUTGOINGS FOR THE YEAR ENDED 5 APRIL 2024
Please use this list to remind you of all potential sources of income and allowances. This list is not intended to be exhaustive, and you should also send us any information relevant to the preparation of your tax return.
Earned Income
- Salary, bonuses and benefits or tips for employments/directorships (please provide forms P60, your final or March payslip and P11D)
- Expenses paid personally, e.g., professional subscriptions
- Share options granted or exercised (please provide documentation in respect of the share scheme)
- Compensation payments received in relation to employments or directorships
- Income and expenditure in relation to a self-employment
- Private pension received (please provide P60) including documents of any Pension drawdown
- State pension received
- State benefits received including Child Benefit
- Other earnings or profits from any activities which may be relevant to your tax affairs
Investment Income
- Interest credited to UK and overseas banks, building societies, National Savings, and other interest-bearing accounts, including, for example, solicitor’s accounts, PPI interest (please forward tax certificates)
- Cash payments received on building society, life insurance company or other mutual concern following mergers, take-overs or flotation
- Dividends, including shares taken in lieu of cash dividends (please provide tax vouchers)
- Withdrawals from investment bonds (please forward chargeable event certificates)
- Commission received
- Income and expenditure in relation to let property, both UK and overseas
- Income from any UK or overseas estates or trusts (please forward tax certificates received)
- Any other income which you think may be relevant to your tax affairs
Outgoings
- Interest paid on qualifying loans, e.g., loans to your company/business or to purchase shares in unquoted trading companies (conditions will apply)
- Subscriptions to Venture Capital Trusts, Enterprise Investment Schemes or Seed Enterprise Investment Schemes (please forward tax certificates provided in relation to these investments)
- Details of all pension premiums paid, both employee’s and employer’s (if in doubt if you are getting higher tax relief, please check with us)
- Donations under a charitable deed of covenant or the gift aid scheme
- Any other outgoings which you think may be relevant to your tax affairs
Capital Transactions
- Acquisitions and disposals of chargeable assets
- Benefits or payments from a Trust including Overseas Trust
- Significant gifts of money or other assets made in the year, exceeding £3,000 in total
- Details of any other capital payments or receipts which you think may be relevant to your tax affairs
- Gifts of property or cash that you benefit from personally
Non-Domicile (only relevant to non-UK domiciled individuals)
- Income and gains arising outside UK
- Funds remitted to UK
If you have any concerns regarding what needs to be included on your tax return, please contact us on 020 3960 0990.