ONE of my earliest memories is of my mother shouting, “Don’t go too near the edge” as I ambled along the clifftop path near Charmouth.

It came to mind recently when I was called by a Financial Times journalist who was writing about tax traps for the unwary.

He was particularly interested in “cliff edge” effects, where straying just the wrong side of the line could have a dramatic effect on someone’s tax liability.

One such cliff edge is found in the new Marriage Allowance where someone with an income of less than £10,600 can transfer one tenth of their personal allowance (worth £212) to their spouse or civil partner as long as that individual is not a higher rate taxpayer.

Income £1 below the higher rate threshold and you can transfer the allowance; income £1 over it and you can’t: a £212 tax break lost for the sake of £2.

Another can be found in the inheritance tax regime. Small lifetime gifts of less than £250 are disregarded, but gifts over that amount and within seven years of death may give rise to a liability. A gift of £250 is exempt whereas a gift of £251 is potentially exposed to tax (on the full £251).

Then there is Child Benefit. A couple with two incomes of £49,999 can claim Child Benefit whereas a couple where one partner has an income of £60,000 and the other nil cannot. Can it really be the case that the couple with the highest income (by £39,998) can receive a benefit where a lower earning couple can’t? I’m afraid so.

Sometimes there is nothing that you can do about such situations, but often there is. You could for example make a donation to charity under gift aid to reduce your taxable income and pull you away from the edge.

You may be able to make a pension contribution which would have the same effect. If you are self-employed you could check that you have claimed all allowances and reliefs you are entitled to and if you are employed, some form of salary sacrifice arrangement may be possible.

Avoiding the edge is good advice whether it is a matter of tax or walking a cliff path. You just need someone watching out for you so that you know it’s there. While it may be too late to listen to your mother, it’s never too late to listen to your accountant.

*Paul Aplin OBE is a tax partner with A C Mole & Sons and chairman of the Technical Committee of the Institute of Chartered Accountants in England & Wales Tax Faculty; you can follow him on Twitter @PaulAplinOnTax. He and fellow tax partner Amanda Gunter can be contacted on 01823-624450.