As a new tax year dawns in the UK, it’s never too soon to start engaging in meaningful tax planning says Nicholas Toubkin, Director in the Wealth Planning Division.
These can be split into ‘good housekeeping’ exercises that are important to consider on an annual basis, and more strategic planning measures that might be relevant to you depending on your circumstances.
Good housekeeping:
The earlier you use certain tax allowances, the more you shelter assets from ongoing tax.
Steps that you can make immediately in the new tax year are the following:
Placing assets in a tax efficient wrapper early in the tax year can yield meaningful financial results. The sooner monies are wrapped in an ISA, the sooner dividend payments and any growth is protected.
Later in the year, once your income position for the tax year becomes clearer, it is worth considering what scope that you have to make inheritance tax efficient ‘gifts out of regular income’, and the possibility to make additional pension contributions, carrying forward unused allowances from previous tax years.
Strategic planning:
Good annual tax planning is essential, and it is also important to pay attention to changes in your own personal tax circumstances and changes to tax legislation that might affect you. Examples of these include:
Please note: this article only applies to UK resident and domiciled clients.
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