A few weeks ago, I addressed the topic of year-end personal finance planning, with a specific focus on pension contributions and tax relief.

There are, however, several additional considerations that partners should also bear in mind as this tax year winds down and planning for the tax year ahead becomes a top priority.

Holding cash, shares and rental property

One key element of any partner’s financial planning should include examining ways to hold cash and share savings more tax efficiently in the future.

The 40% higher tax bracket kicks in when income totals £43,875 and the 50% tax threshold is £150,000. If your spouse’s tax rate is lower than yours there is a tax benefit in holding bank deposits in your spouse’s name and transferring shares into their name. It is relatively easy to effect such transfers.

Alternatively, if you want to maintain some control of the cash funds, transferring your bank account into joint names will reduce the tax on half of the annual interest income.

For those partners who own rental property there are a few tax planning opportunities available. For example, if your spouse pays tax at a lower rate, hold the property in joint names to improve tax-efficiency.

Alternatively, in some instances you can withdraw equity in the rental property and replace it with debt on which you can obtain tax relief on the interest payments.

Capital gains tax

Another straightforward tax planning technique is the use of the annual capital gains tax exemption. It is possible to realise gains of up to £10,100 in total in 2010/11 before CGT becomes payable.

This exemption does not get carried forward if not used, so it is definitely worth reviewing your portfolio to see if some gains can be triggered and realised tax-free within this exemption. To add an element of sophistication, review whether there are any investments standing at a loss, which could be sold to realise the loss and offset against gains beyond the annual exemption.

Your spouse will also have a CGT exemption for 2010/11. You can transfer assets tax-free to your spouse, who can then sell them to use their exemption – doubling the exemption used!

The introduction of the 50% income tax rate emphasises the differential with the far lower capital gains tax rate of 28%. This difference is amplified with an 18% CGT rate for those subject only to the basic rate income tax band.

Where possible, partners should look to structure investments to realise a capital gain rather than income.

Additionally, modest gains beyond the annual exemption are best realised in a spouse’s name if that spouse is only a basic rate taxpayer at most.

Charitable donations

An often overlooked tax relief is charitable donations paid under the ‘Gift Aid’ scheme. Charities are now quite good at getting you to ‘tick the box’ so that they can reclaim basic rate tax relief on your Gift-Aided donations.

But neither charities nor the government are so good at pointing out that higher rate taxpayers are entitled to further tax relief personally on their Gift Aid contributions.

Donors whose taxable income exceeds £150,000 can get 50% tax relief on their donations by using the Gift Aid scheme. Higher rate tax relief is available by claim on your tax return, thus reducing your tax bill.

If your spouse is only a basic rate taxpayer it is more tax-efficient for you to make any Gift Aid charitable donations, as it is only you who is entitled to the higher rate tax relief.

ISAs, EIS and VCT investments

Other tax planning opportunities to take advantage of are specific tax breaks introduced to encourage particular investment behaviour and/or compensate for extra risk. The tax breaks are annual, so there is only a short time left to take advantage of the 2010/11 reliefs. Now is also the time when most of the products are available.

Basic tax planning encompasses ISAs (individual savings accounts). Modest equity savings can be effected by investing up to £10,200 pa in ISAs. An ISA suffers no tax on dividend income, and no capital gains tax on any trading on the underlying funds by the unit manager.

All adults are entitled to invest in ISAs, so you could assist your spouse or adult children in investing in ISAs, should you wish.

You are able to invest up to £500,000 in fresh shares issued by qualifying companies under the Enterprise Investment Scheme (EIS), and obtain 20% income tax relief on the investment.

This income tax relief can be carried back one tax year. EIS investments in 2010/11 can also be used to shelter capital gains made in the period one year before and up to three years after the date of the EIS investment.

Investments in Venture Capital Trusts (VCTs) allow 30% income tax relief. Up to £200,000 can be invested in VCTs in 2010/11.

With a little bit of planning and consideration, tax relief will be ripe for the picking in the year ahead.