As we enter 2024, it appears that the economy is beginning to settle, with interest rates now stabilising and inflation coming down. Having said that, nobody really knows what’s around the corner. What we can do, though, is be proactive with the things we can control.
With the end of the tax year fast approaching, it’s time to look at your finances and understand the actions you need to take to maximise your tax-efficient allowances ahead of the new financial year, which starts on 6 April 2024.
To prepare, start thinking about the tax planning opportunities that apply and are available to you. With just a few months to go until the end of the tax year comes round, this is the perfect time to check you’ve taken full advantage of your annual allowances and are in the best financial position for the year ahead. As the cost of living continues to squeeze people’s finances, it is more vital than ever to save as much money as possible through tax efficiency.
You’ve still got time – but don’t leave it to the last minute!
Plan to succeed
There’s lots to take into consideration when planning for the end of the tax year – it can often feel a little overwhelming! Let’s break it down a bit:
Perhaps you might think about topping up your pension contributions (and/or making contributions on your children’s behalf), using your Dividend Allowance or doing some Inheritance Tax (IHT) planning.
If you have assets to dispose of or transfer, act now to ensure you take full advantage of this year’s Capital Gains Tax (CGT) exemption.
Keen investors might look at tax-efficient investments, including ISAs (Individual Savings Accounts), JISAs (Junior Individual Savings Accounts) and – for investors with a greater appetite for risk – tax-efficient investment vehicles such as Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EISs).
Even if you’re not in a position to fully utilise ISA or JISA subscriptions or pay the maximum Annual Allowance into your pension (for instance), it can all add up surprisingly quickly. Over the years, utilising your tax-efficient allowances could make a real difference to your financial wellbeing.
Get in touch
Whatever your circumstances, don’t hesitate to get in touch for expert advice. We can help you take control, plan ahead and stand you in good stead to improve your financial wellbeing in 2024 and beyond.
This article is for general information only and does not constitute advice.
For ISAs, investors do not pay any personal tax on income or gains, but ISAs may pay unrecoverable tax on income from stocks and shares received by the ISA managers.
Tax treatment varies according to individual circumstances and is subject to change.
Stocks and Shares ISAs invest in Corporate bonds; stocks and shares and other assets that fluctuate in value.
Venture Capital Trusts (VCT) and Enterprise Investment Schemes (EIS) invest in assets that are high risk and can be difficult to sell such as shares in unlisted companies. The value of the investment and the income from it can fall as well as rise and investors may not get back what they originally invested, even taking into account the tax benefits.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.