Use it before you lose it says Wealth Manager Faye Silver - Raymond James Branch Principal

UK tax rules are always under scrutiny, and there are never any guarantees that the tax allowances we are used to as investors will be around forever, writes Faye Silver.

Chancellor Jeremy Hunt announced in the Autumn statement that CGT free-tax allowance will be halved from £12,300 to £6,000 for the 2023/24 tax year and £3,000 in the 2024/25 tax year. If you are sitting on any assets that are subject to gains you may want to take advantage of the higher allowance before the end of the tax year.

Fill Up Your ISA - The ISA allowance for 2022/23 tax year stays at £20,000 and at £9,000 for Junior ISAs. ISAs remain one of the simplest tax planning vehicles – there are no complicated structures, just an open wrapper in which different investments can be placed; or held in cash temporarily. 

Once savings are in ISAs, they are free from Capital Gains Tax and Income Tax forever. Even if built up slowly, the long-term benefits of ISAs add up; especially for generating a tax-free income in retirement.

Don't Forget Your Pension - Pensions flexibility rules have made a big difference, and the tax relief on pension contributions can boost investments. For a basic rate taxpayer, investing £1,000 into an ISA requires £1,200 salary before income tax (plus national insurance). To put £1,000 into a pension costs just £800 as £200 tax relief is added. For a higher rate taxpayer, the net contribution is effectively £600 as £200 is given as relief through your tax return.

Any Questions? - If you want help or advice on the best options for you, speak to the team here at Raymond James Hitchin. Remember, tax treatment depends on individual circumstances and may be subject to change in the future.

By Wealth Manager Faye Silver - Raymond James Branch Principal

Faye has a high profile within the local community through her work with fundraising, community and networking events. Highly-regarded finance professional Faye has also featured in The Times, The Sunday Times and The Daily Telegraph dispensing expert advice.

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Raymond James Branch Principal Faye Silver (right) along with fellow RJS Hitchin Branch Principal Susie Bewell. CREDIT: RJS Hitchin