The latest data released by the Treasury shows that it has received record tax receipts across income, capital gains and inheritance taxes over the past year, however, tax experts warned this was unlikely to prompt cuts in personal tax rates in next month’s Budget.
The figures show that self-assessed income tax receipts reached £21.9bn in January 2023, jumping one-third on the previous year, boosted by frozen thresholds, inflation and high employment numbers.
Meanwhile, capital gains tax payments hit £13.2bn in January — up 24 per cent from the same month in 2022 — as investors hurried to lock in gains ahead of speculation about tax rate rises last spring.
As part of your financial plan, it is always important to review tax and legislation changes to see how they will affect you and your family. Recent reductions in the capital gains tax allowance, and the ongoing frozen IHT allowances, mean that more of your savings and investments could be caught in paying unnecessary tax.
It has long been said that Inheritance Tax is a voluntary tax, whilst capital gains tax can be mitigated each year by using your allowances and not losing them.
Here at The Financial Planning Group we advise our clients on how best to arrange their affairs in order to reduce unnecessary tax. To speak to one of our chartered financial planners please call Tim Norris on 020 8614 4780 or e-mail email@example.com