Tax saving opportunities before the budget?

Published: 01/10/2024 By Hannah Duncan

With the budget approaching, is now the time to act on tax-saving opportunities - here are some strategies to consider:

  1. Maximise Pension Contributions:
     Pension allowances offer significant tax relief, especially for higher and additional rate taxpayers. If eligible, consider using the carry-forward rule to boost contributions up to £200,000 this tax year.
     

  2. Invest in ISAs:
     Take advantage of tax-free growth and avoid capital gains tax (CGT) by using your full £20,000 ISA allowance as there is rumours the government could reduce the allowance.

  3. Junior ISAs:
     Protect your child’s investments from taxes and plan for their future with a Junior ISA. Contributions can also help with inheritance tax planning.>

  4. Bed & ISA Strategy:
     Move assets from outside an ISA into the tax-free wrapper by using the Bed & ISA process to avoid dividend tax and CGT.

  5. Use Your CGT Allowance:
     Realise gains within your £3,000 CGT allowance now, spreading them over time for tax efficiency.

  6. Transfer Assets to a Spouse:
     Married or in a civil partnership? Transfer assets to take advantage of both partners' allowances, reducing your overall tax burden.

  7. Make Use of Gift Allowances:
     
    You can gift up to £3,000 annually, immediately reducing your inheritance tax liability.
     
Be cautious, though: withdrawing pension cash prematurely could expose you to unnecessary tax and impact your long-term financial plans.

Always seek professional financial advice before making any changes, we have tax advisors and independent financial advisors available to guide you through any required changes. Call us today on 020 8661 7878 or email bsg@turpinba.co.uk