Julian Morgan
The end of the tax year (5th April) represents the last opportunity to take advantage of annual allowances and tax breaks for 2023-24, and to make sure your financial affairs are in order as we head into the 2024–25 tax year.
Fleet Street Wealth is a Chartered, independent, fee based financial advisory and wealth management firm. As a Bar Council partner, Fleet Street Wealth is one of the leading providers of financial advice and wealth management services to the Bar and judiciary and looks after clients within most of the London sets. We have also developed long-standing relationships with other legal professionals including many of the top law firms.
In the few weeks leading up to 5th April, there are five things in particular we suggest you consider:
1. Pensions
You can contribute as much as you like into your pension but there is a limit on the amount of tax relievable contributions you can make each year – currently £60,000. The Lifetime Allowance, has been removed however this cap still has an impact upon the tax free cash limit within pensions for those previously affected or likely to be affected. For many however, it is still possible to enhance the tax free amounts if they act quickly.
2. Individual Savings Accounts (ISAs)
Don’t overlook your ISA allowance (£20,000 for 2023-24). Use it or lose it! Junior ISAs are also a
tax-efficient way to build up savings for children and grandchildren. The maximum investment is £9,000 per child.
3. General Investment Accounts (GIAs)
One can build tax efficient savings within GIAs and offset some or all of the gains against one’s Capital Gains Tax Allowance each year. You can’t carry forward this relief therefore consider crystallising any gains or offsetting any losses before 5 April. The annual CGT exemption is £6,000 and will fall to £3,000 in April 2024.
4. VCTs and EISs
Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EISs) are attractive for experienced investors and offer many tax benefits although it is essential to review investment companies’ offerings or seek professional advice when looking to invest.
5. Inheritance Tax (IHT)
IHT thresholds remain frozen until April 2028. Although the sums you can gift for IHT purposes are small, you should use these exemptions where possible (gifts worth up to £3,000 in each tax year are exempt from IHT on death). Certain gifts can be made in addition to this annual exemption and won’t incur IHT.
It’s important to ensure that you take expert advice to benefit from any tax planning opportunities before they are lost for this tax year. If you do not currently work with a financial advisory firm and/or would like a review of your financial situation ahead of the end of the tax year, please contact us.
To arrange a discussion without obligation or cost to discuss your situation,click here, call 020 7353 6373, or email financialadvice@fswealth.co.uk. And be sure to mention Chronicle Law and the complimentary appointment.
Fleet Street Wealth is a trading style of Fleet Street Financial Ltd which is authorised and regulated by the Financial Conduct Authority.
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.