Advice such as maximising your available Isa and Pension allowances; ensuring you keep your child benefit if you are your partner are close to the £50,000 income threshold; reducing your Inheritance Tax exposure and using your Capital Gains Tax allowance, are considerations we all need to take on board at this time of year – especially with several key rule changes on the horizon. They include:
- The Lifetime Allowance is being reduced from £1.25 million to £1 million. In addition to this, high-income individuals will have a lower Annual Allowance.
- A tax-free Dividend Allowance of £5,000 will replace the current Dividend Tax Credit. This means that the first £5,000 of total dividend income received in the tax year will be tax-free. The allowance is available to anyone who has a dividend income.
- Basic-rate taxpayers will be able to earn up to £1,000 in savings income tax-free. Higher-rate taxpayers will be able to earn up to £500. Non-taxpayers will still be entitled to reclaim any tax deducted at source from their income.
Now would be a perfect time to speak to The Financial Planning Group about re-appraise your finances – for this year, for next year, and into the future. If you would like to discuss your personal finances, or make an appointment to work out the right investment and pension strategy, please call us 0800 731 7614 or e-mail email@example.com.