AS the end of the tax year gets closer, there is a window of opportunity to make the most of valuable allowances, reliefs and exemptions that can help reduce your tax bill and make sure your finances stay tax efficient.

Some of these allowances will be lost if not used before the tax year end on April 5 - and the sooner you claim them the better.

Every year, many people leave end of year tax planning until the last minute.

Leaving planning until the 11th hour increases the risk you will discover you have left it too late and missed out on the chance to improve your financial position.

Acting well before means you can be sure you are maximising your opportunities and minimising your stress.

There are plenty of opportunities out there.

The recent leak of offshore tax avoidance records linked to prominent individuals - the Paradise Papers - may have sparked confusion in some people’s minds about the appropriateness of tax planning.

However, Government-endorsed allowances, reliefs and exemptions remain both legally and reputationally safe.

The Government offers these reliefs to encourage investment and they are designed to be beneficial.

The UK’s tax system is constantly changing, which means that unless you remain up to date there is always the chance that you could lose out. Sometimes reforms are for the better, as witnessed with the substantial recent increase in the ISA allowance.

Others can be for the worse, such as the series of cuts that has been inflicted on pension allowances.

The important thing is to remain informed.

The annual allowance is the limit on the amount of pension contributions that can be made each year and qualify for tax relief.

In the 2017/2018 tax year, the standard rule is that you can contribute the lower of your annual earned income, or £40,000.

Currently the lifetime allowance is £1m.

Any savings above this level when you begin to draw your pension will be subject to a lifetime allowance charge.

For 40 per cent tax payers the charge is 55 per cent; for additional rate taxpayers it is even higher.

In our low interest rate environment, making sure your savings and investments are not needlessly depleted by tax is more important than ever. ISAs are at the core of most tax-efficient portfolios, and in April 2017 there was a substantial increase in the annual ISA allowance. If you don’t use your allowance before the end of the tax year you lose it forever.

The personal savings allowance means that basic-rate taxpayers can earn up to £1,000 of interest on savings without having to pay any income tax. Higher-rate taxpayers can earn up to £500 interest tax free.

Most people wait until death before passing on their wealth through their wills.

But, transferring wealth while you are alive can have a transformative effect on your family’s life and reduce an inheritance tax (IHT) liability.

There are a number of annual gift allowances, which you lose if you don’t make use of them before the tax year end.

You can give away £3,000 each year and this will not be subject to IHT.

In addition, parents can give £5,000 to each of their children as a wedding gift, while grandparents can give £2,500.

Gifts of any size to charities or political parties are also tax free.

If a gift is regular, comes out of your income and does not affect your standard of living, any amount of money can be given away and ignored for IHT.

The use of allowances is a deceptively complex area, and professional advice can help you to maximise the potential of the various tax savings on offer.

Matthew Worton is a trainee investment manager at wealth management firm Brewin Dolphin, based in Newcastle.

The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin. No director, representative or employee of Brewin Dolphin accepts liability for any direct or consequential loss arising from the use of this document or its contents. Any tax allowances or thresholds mentioned are based on personal circumstances and current legislation which is subject to change. The value of investments can fall and you may get back less than you invested. The information is for illustrative purposes only and is not intended as investment advice.