7 tax allowances to remember to take advantage of this tax year-end

1. Make the most of your clients' Personal Income Tax Allowance

The 7IM SIPP, available on the 7IM platform, offers you and your clients the flexibility to take income in several ways to suit their needs. If your clients would like to take income up to their marginal rate of income tax (usually £12,570), this can be done using Tailored Drawdown, a series of regular Uncrystallised Fund Pension Lump Sums (UFPLS).

The platform will crystallise the required amount every month and pay out 25% tax-free. The remaining 25% of the amount crystallised is taxable as income at the marginal rate of income. Other methods of taking income from the 7IM SIPP include:

• A one-off tax-free lump sum only
• A one-off tax-free lump sum followed by regular income
• Uncrystallised Fund Pension Lump Sum (UFPLS)
• Tailored drawdown as mentioned above.

And bear in mind you can guarantee some or all of the income for your clients through the purchase of a Secure Lifetime Income (SLI) option available in conjunction with JUST. The SLI is purchased from crystallised cash; all income payments are made by Just into the 7IM SIPP on behalf of the individual member (i.e., your client), and this can then be taken as income or reinvested into the SIPP.

Content quick find

1. Make the most of your clients’ Personal Income Tax Allowance

2. Make the most of your client's Annual Pension Contribution Allowance

3. Carry Forward unused allowances

4. Junior SIPPS – a long-term present

5. ISAs – use it or lose it

6. Junior ISAs

7. Managing Capital Gains Tax using the 7IM Platform

2. Make the most of your client's Annual Pension Contribution Allowance

Has your client made the most of their annual allowance this tax year? Please see our cut-off dates for pension payments here. The pension annual allowance limit for this tax year is the lower of £60,000 or 100% of a client's earnings, or £3,600 without earnings.

We can provide you with a list of existing 7IM SIPP clients who have remaining contribution allowances for the current tax year. Bear in mind we prefund tax relief, so it is invested the same day we receive the client's contribution.

3. Carry Forward unused allowances

If your clients have been unable to make full use of their contribution allowances over the previous three tax years, they might be able to benefit from making a larger contribution in the current tax year.

For more information, please see HMRC Carry Forward rules.

4. Junior SIPPs – a long-term present

Did you know you can open Junior SIPPs via the 7IM Platform for your clients' children? While saving for the children's retirement might not sound like the most exciting thing to do, it can significantly boost their retirement savings.

Currently, you can save up to £3,600 into a child's Junior SIPP. And like a regular pension, the government will also provide tax relief of 20% on contributions. Find out more on our Junior SIPP information page.

5. ISAs – use it or lose it

With a £20,000 allowance each tax year, ISAs continue to be one of the most tax-efficient ways to save. They allow your clients to earn interest or grow their investments free of tax, and withdrawals don't suffer any capital gains or income tax.

7IM ISAs are flexible, and any cash withdrawn can be reinvested during the same tax year.

ISA allowance reports are available to check how much allowance remains for your clients. We also have the Bed & ISA tool where you can sell from the General Investment Account (GIA), move cash into the ISA and reinvest all on one page. For more information, please visit our ISA information page.

6. Junior ISAs

A Junior ISA (JISA) is a great way to help your clients' children (or grandchildren) build their wealth. Like the adult version, there's no tax to pay on any interest or returns within a JISA.

At the time of writing, the JISA annual allowance stands at a generous £9,000, and while an account can only be opened by the children's parents or legal guardians, anyone can pay into it.

It's worth remembering though, while the money can't be accessed by the children, when they turn 18 they automatically get full control of the money. For further details, please visit our Junior ISA information page.

7. Managing Capital Gains Tax using the 7IM Platform

This tax year's capital gains tax (CGT) allowance is down at £6,000 per individual, but will be cut again in the new tax year to £3,000. We have a range of reports and tools available on the platform to help you manage your clients' CGT allowances.

You can download a CGT summary report from the 7IM Platform covering all your clients by navigating through the following steps: Reports > Tax > CGT Reports > All Clients CGT Report