IHT: The run up to the 5 April is always an opportunity to review Isa portfolios and make sure clients have used their full allowance.
As a result, it’s a good time for Aim IHT Isas; whether that is transferring an existing Isa portfolio into an Aim IHT service and/or utilising the current tax year allowance within an Aim IHT portfolio service.
Q2: April to June
EIS: The start of the tax year is when advisers should look at evergreen growth capital EIS funds.
The fund managers will have the time to deploy the money without the pressure of tax year end. It also means investors have a good chance of having their EIS 3 certificates back before the self-assessment deadline on 31 January the following year.
VCT: The majority of VCTs will be closed. The main thing to remember is to collect or keep a record of clients' shares and tax certificates which can often be sent directly to the client. These are either used to adjust an investor’s tax code, or submitted with their self-assessment.
It could also potentially be worth considering transferring any VCT shares into a nominee account to house all your clients' investments under one roof, making it easier to keep track of everything.
IHT: Investing in business relief for IHT is less driven by tax year end than EIS or VCT as it’s not tax-year dependent.
However, as clients will have no doubt looked at their Isa subscription for the past tax year it’s worth considering the new tax year’s subscription at the same time. It’s also perhaps worth considering switching an existing Isa portfolio into an Aim IHT Isa service.
General: Keep an eye out for educational seminars run by managers and industry bodies following the end of the previous tax year.
These will provide a refresher on product benefits and specific legislation, highlight rule changes and provide modelling and opportunities to engage with clients.
Jack Rose is head of tax efficient products at LightTower Partners
