Here at Hunter Aitkenhead we cannot believe it is that time already, but in exactly one month we will be starting the new tax year.
So, what do we have to look forward to in the year ahead?
- An increased personal allowance of £10,500 for most working-age people.
- An improved ISA allowance of £15,240; a modest increase compared to the big jump last year.
- The first year that our economy has surpassed the previous highs since 2008.
- “Pension freedom & choice” legislation introduced, with improved death benefits and flexibility to most modern pensions.
There will be challenges too, however;
- A general election widely considered to be the least predictable for generations.
- Another year of frozen Nil Rate Bands for Inheritance Tax, and no inflation-linked increases to annual allowances or the lifetime allowance will continue to affect savers.
- More political troubles ahead in the Eurozone, as far-right and anti-austerity parties are gaining support throughout the continent.
Given that we have a month of the current tax year left, there are a few things to think about before looking ahead;
- Make use of your allowances! Pensions, ISAs, capital gains tax exemptions all reset on April 6th, and if they aren’t used they are lost.
- Watch out for the current government’s final budget, to be announced on 18th March. Whilst this may not last long if the opposition are running the country in May, there is a good chance of further focus on pensions and savings.
If you would like any further information about points raised in this post (other than guesses about the election!) please don’t hesitate to get in touch.
