As the final weeks of the 2024-25 tax year approach, vigilant taxpayers are keenly aware of the impending deadline: the 5th of April. This date marks the cut-off for various tax-free allowances ...
Act now to take full advantage of the tax-free allowances available to you!
These tax-free allowances can play a vital role in your financial landscape. From Inheritance Tax gifts to Capital Gains Tax (CGT) exemptions and pension contributions, these allowances provide numerous avenues for reducing taxable income and maximising tax efficiency.
"With the UK's economic environment shifting, now is the time to act judiciously!"
One prominent strategy involves Inheritance Tax gifting, where you can gift up to £3,000 per year without incurring tax liabilities. This amount can be carried over to the next tax year if unused, making it an effective way to reduce the eventual inheritance tax burden on estates.
Another vital area to consider is Capital Gains Tax, particularly if you have investments or property. By crystallising any gains before the year ends, you can make full use of the annual exempt amount for CGT, which is currently set at £3,000.
This strategy not only facilitates better tax management with investments, but also enhances your overall financial position. Those who delay could risk incurring higher tax liabilities moving into the next tax year.
Pension contributions represent yet another opportunity that should not be overlooked. The current annual allowance for pension contributions stands at £60,000, offering an exceptional route to bolster retirement savings. Contributions not only reduce taxable income, but also benefit from tax relief at your marginal rate.
"Topping up your pension prior to the 5th of April can help secure a comfortable retirement!"
The speculation surrounding potential tax policy announcements in the upcoming Spring Statement - set for the 26th of March - adds urgency to this topic. Economic and fiscal uncertainties may prompt the government to revise tax allowances and reliefs in the future. Proactively managing one's financial affairs now could offer a valuable safety net in light of potential changes on the horizon.
Don't wait until it is too late - engaging with a financial adviser like me may further enhance the strategic use of tax-free allowances available to you. Careful planning is essential to ensuring that you do not miss out on the unique opportunities that the 2024-25 tax year presents.
The approaching deadline of the 5th of April serves as a crucial reminder for taxpayers to maximise their tax-free allowances. By understanding and utilising these exemptions effectively, you can secure your financial future and ensure you optimise your tax position before it is too late.
Act now to take full advantage of the tax-free allowances available to you.
Until next time ...
HELEN BEAUMONT
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the tax free allowances available to you before the 5th of April 2025, do give me a call on 01908 774323 and let's see how I can help you.
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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