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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am getting a large redndancy payment. I know I get 30K tax

Customer Question

I am getting a large redndancy payment. I know I get 30K tax free and I will also maximise my pension payments for this year. I have no previous year allowances I an use on my pension.

Is there anything else I can do to avoid giving 45% to the taxman?
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

Hi.

You say you will maximise your pension contributions for the 2013/14 tax year and that you have no unused pension contribution allowance from the three previous tax years.

Other than pension contributions or possibly delaying your redundancy until after 5 April 2014, I'm afraid there is really very little you can do to reduce your tax exposure apart from investing in high risk companies through the Enterprise Investment Scheme, the Seed Enterprise Investment Scheme or the Venture Capital Trust Scheme. These schemes are really aimed at those who have risk capital they are prepared to lose in the search for the new Microsoft or Google.

I hope this helps but let me know if you have any further questions.