How tax efficient are you in 2021? Review it before this tax year end

By DTE Business Advisers

26 Feb 2021

puzzle-3223875_640.jpg

With the tax year end soon approaching on 5 April 2021, this is a good time to review your tax situation to see how you can optimise your tax efficiency. A year-end tax review is particularly useful this year given all the events last year leading to significant government spending.

Below are a few areas you should look at:

("How tax efficient are you in 2021?" was originally published on DTE website).

Pension Planning

For many years investing into a pension fund was seen as something less than dynamic. However, with the challenges by HMRC over the last decade with regards to aggressive tax planning, pension planning is back in vogue.

There has been in recent years regular comments that the Chancellor may restrict tax relief on personal contributions to the basic rate of income tax which at present is 20%. With the Budget scheduled for early March 2021, you may wish to bring your pension planning forward. Remember, employer contributions are relievable against corporate profits.

The pandemic has cost the treasury billions of pounds in terms of support. At some point an attempt will be made to repay the financial support given. An obvious target in this regard will be capital taxes.

Capital Gains Tax (CGT)

If you have an investment portfolio, make sure your adviser is utilising your annual exemption which for 2020/21 is £12,300. Consider transferring investments to your spouse/civil partner to utilise both exemptions.

There has been a debate on whether the annual exemption is too generous. Impending property transfers should be pushed along at an early date, preferably before the Budget on 3 March 2021. However, be aware of the new residential property capital gains tax rules where the CGT has to be paid within 30 days of completion.

CGT on other asset disposals have the following payment dates:

Year ending 5 April 2021       —– 31/1/22 Year ending 5 April 2022     ——–31/1/23

If you plan to sell a second home or business asset in 2021, find out more from this article about applicable Capital Gains Tax, as well as (for those in business) how you can use Business Asset Disposal Relief to offset part of that CGT.

Inheritance Tax

At present, most lifetime gifts do not attract an Inheritance Tax liability as a result of the 7 year rule. However, there is speculation the Chancellor may introduce a 10% lifetime rate. Therefore, it is suggested that any planning at present being considered is progressed at an early time. Again, this is mentioned in the light of the Chancellor’s Budget in early March 2021.

Finally, don’t forget the annual gift allowances available.

If you have any questions or would like to discuss your specific situation, please get in touch with us at [email protected] and one of our advisers will get back in touch with you as soon as possible.

Latest news

1

Rise of the multi-skilled workforce as employers ‘reimagine’ jobs to fill skills gaps A VR headset helps construction learners explore CAD plans

Rise of the multi-skilled workforce as employers ‘reimagine’ jobs to fill skills gaps

09 Jul 2025

2

Walker Fire accelerates growth with two strategic acquisitions and launch of new digital platform Walker Fire

Walker Fire accelerates growth with two strategic acquisitions and launch of new digital platform

08 Jul 2025

3

10th year of growth for Begbies Traynor Ric Traynor of Begbies Traynor

10th year of growth for Begbies Traynor

08 Jul 2025

4

Iconic Lancaster Inn gets £600K makeover New bar at Toll House Inn at Lancaster

Iconic Lancaster Inn gets £600K makeover

08 Jul 2025

5

FWP completes life-changing youth support project Boat House Youth Centre

FWP completes life-changing youth support project

08 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College University Courses Building, Burnley, BB12 0AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers
Champagne-Jewellery 10 07 25_page-0001.jpg.jpg
LBV Hub Awards
10 Jul 2025 - 10 Jul 2025

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers

Blackburn Cathedral, Blackburn, BB1 5AA

18:00 - 20:30

Choose Chorley for Business - Talent Reimagined Business Breakfast
talentreimaginedbb.png.png
LBV Hub Seminars
10 Jul 2025 - 10 Jul 2025

Choose Chorley for Business - Talent Reimagined Business Breakfast

Strawberry Fields Digital Hub, Chorley, PR71PS

08:00 - 10:30

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin