With the New Year comes new beginnings, and people start to turn their attention to setting resolutions and good intentions for the year ahead. Those should not only be limited to the traditional resolutions, so here are some inspirational financial resolutions for you to give some thought to:-
- The tax year ends on 5 April 2021 and there are a couple of things to think about before then:-
- Use your annual gift allowance of £3,000 for this tax year (and your £3,000 from the previous tax year, if you did not use it);
- Use your ISA allowance; and
- Make disposals to use your annual Capital Gains Tax allowance, currently £12,300 for individuals.
- The Residence Nil Rate Band (RNRB) allowance increased in April 2020 to £175,000 (and this was the last increase scheduled, other than increasing in line with inflation). Have you structured your wills in such a way to make use of the allowance? Is your estate over the RNRB threshold? If so, have you taken tax planning advice about ways to ensure the RNRB is not wasted on death?
- Personal tax returns need to be submitted before 31 January. Have you submitted yours? If you need any help with this, please contact our Private Client team
- Have you thought about future proofing for the next generation, be it for your family, business or farm? Many leave their estate planning to the last minute, when one key rule can be to make gifts and survive them by seven years, which can result in less Inheritance Tax being paid. Armed with the right information and advice, you can take steps now to plan for the future to preserve your wealth for generations to come.