No Smokescreen Headlines – Just Financial Facts

No Smokescreen Headlines – Just Financial Facts

Another Financial Year is fast rolling around to the end of one, and the beginning of another.

There is a lot to review but, you may fall into three categories:

  • You already have a reliable Financial Adviser and have everything in hand – well done.
  • You try to deal with matters yourself but wish you had more technical knowledge (or that Martin Lewis lived next door!).
  • This alien spacecraft lands once a year, someone shouts ‘Pension Planning’, you turn the TV to its loudest setting and hide until it goes away.

Our view on these three scenarios is:

  • Fantastic but, if you ever feel you need a second opinion, or fresh ideas – please get in touch.
  • It is great that you have the time and knowledge to research the complex world of financial planning. We are professionals and have been doing it for many years – on behalf of many happy clients – and we’re still discovering something new every day. If you think it might be time for your lifestyle to benefit from professional adviceplease get in touch.
  • Very simply – we are not aliens – get in touch please, very soon.

Call Andrew Snowball on 0207 821 2424, or email via the Contact Page: HERE.

To make the most of the tax and other advantages of having your financial ducks in a row by the end of the Financial Year (5th April), these are some of the key areas for discussion:

  • Pension contributions: The tax limits for pension contributions were eased at the start of the current tax year. You may now be able to make contributions for the first time in some years. But take care ­– just to complicate matters further, the rules will be changing yet again from 6 April 2024.
  • Capital gains tax (CGT): Now is the time to review your investments and consider whether to realise gains up to your annual exemption. This is particularly important in 2023/24 as the exemption of £6,000 will fall to £3,000 in the next tax year.
  • Individual savings account (ISA) contributions: Your annual ISA allowance is £20,000 (£9,000 for Junior ISAs), which cannot be carried forward. With the personal savings allowance frozen and the dividend allowance and CGT exemption both halving in 2024/25, the case for maximising ISAs has arguably never been stronger.
  • Inheritance tax: Use your annual exemption (£3,000 per tax year) for 2023/24. If you have unused exemption from 2022/23 you can also gift this, but only after you have used the current year’s exemption.
  • Marriage allowances: If you or your spouse/civil partner had income of less than the personal allowance in 2018/19 (£11,850), then you have until 5 April 2024 to claim the marriage allowance for that year (£1,190). A claim can only be made if the other partner was a basic rate taxpayer in that tax year. The same principle applies for 2019/20 onwards.
  • Income planning: Frozen allowances and tax thresholds mean you could move from being a basic rate taxpayer now to a higher rate taxpayer in 2024/25. Similarly, from April you might be caught for the first time by the High Income Child Benefit Charge or personal allowance taper. Actions to limit the larger tax bill include bringing forward income into 2023/24 or transferring income-generating investments to your spouse/civil partner by 5 April.

They won’t usually all apply, but some / many might.

Call Andrew Snowball on 0207 821 2424, or email via the Contact Page: HERE.