The fiscal statement last week thankfully didn’t throw up any big surprises and we think there’s some good news to share:
- State Pension increase of 10.1%
- Capital Gains Tax (CGT) rates remain the same (the highest rate of CGT is charged at 20% (non-property) and 28% (property), whereas income tax is 40%)
- Higher rate tax relief on pension contributions remains unaffected
- The freeze on the pension lifetime allowance (LTA) has not been extended
- Personal allowance and income tax thresholds remain the same until April 2028
That being said, there are a few thresholds which have been impacted:
- CGT threshold reduced to £3,000 by April 2024
- Dividend tax-free allowance will reduce to £500 by April 2024
- Additional rate income tax threshold lowered to £125,140
- IHT threshold frozen until April 2028
Rest assured, there are ways to plan for the incoming changes and remain as tax efficient as possible. With this in mind, here’s our hints and tips:
We recommend speaking to one of our friendly experts to ensure your investments are working as tax efficient as possible.
Please call us on 0808 156 1176 or alternatively, book a free no-obligation chat here and we will be happy to help.
This blog is intended as an information piece and does not construe advice.
