When you’re in the higher- or additional-rate tax bracket, it’s easy to feel like every penny is under attack from HMRC. The reality? There are still legal, sensible tax breaks that many people either forget or have never been told about.
After more than 35 years advising high-net-worth clients, I’ve found these five are consistently overlooked. And they can save thousands.
- Marriage Allowance or Spousal Transfers
If one partner is a non-taxpayer or on a lower rate, transferring certain allowances or assets can reduce overall tax. This isn’t just for those on modest incomes – high earners can still benefit when investments, rental properties, or dividends are structured smartly.
- Pension Carry Forward
Many high earners leave this unused. If you haven’t maxed your pension contributions in the last three tax years, you can “carry forward” the unused allowances and make a larger, tax-relieved contribution this year.
- Venture Capital Schemes (EIS/SEIS/VCT)
These aren’t for everyone, but for the right investor, they can:
- Offer 30% upfront income tax relief
- Defer or avoid capital gains tax
- Provide tax-free dividends (VCTs)
- Gifts from Income
This is one of the most underused Inheritance Tax (IHT) exemptions. If you can show regular gifting from surplus income without affecting your standard of living, these gifts are immediately outside your estate, with no seven-year rule.
- Salary Sacrifice
For high earners in employment, using salary sacrifice to fund pensions or other benefits can reduce income tax and National Insurance.
At Hartey Wealth Management, we actively hunt for these underused breaks during our reviews – contact us today to see if we can help you.
