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Tax Year Planning 2023/24: Maximizing Your Financial Opportunities

As the tax year draws to a close, it’s essential to make the most of available allowances and exemptions. At Jerroms Financial Planning, we’re committed to helping you optimise your financial strategy.

Let’s explore how you can prepare for the upcoming tax year end:

1. Individual Savings Accounts (ISAs)

Annual ISA Allowances:

  • You can invest up to £20,000 into an Individual Savings Plan (ISA), where the growth is tax-free. This allowance applies to both stocks and shares ISAs and cash ISAs, or a combination of the two.
  • Additionally, consider contributing up to £9,000 into Junior ISAs for your children. These accounts provide a tax-efficient way to save for their future.

Lifetime ISA (LISA):

  • Paying up to £4,000 into a Lifetime ISA qualifies for a government bonus of 25%. These contributions and the bonus can be used as a deposit for a first-time property purchase.

2. Pension Contributions

Personal Contributions to Pension:

  • The annual pension allowance is the higher of £3,600 or 100% of earnings up to a maximum of £60,000.
  • You can carry forward any unused allowance from the previous three years, subject to your income.
  • Personal pension contributions receive up to 45% tax relief.

Business Contributions to Pension:

  • Contributions made by employers are not restricted by salary.
  • Unused contributions can be carried forward from previous years.
  • These contributions are classified as a business expense, effectively reducing corporation tax.

Tapering of the Annual Allowance and Lifetime Allowance:

  • Be mindful of the tapering rules that affect the annual pension allowance and the lifetime allowance. Our team can guide you through these complexities.

3. Contributions to EIS and VCT

  • Contributions qualify for 30% tax relief.
  • EIS can be carried back to previous tax year.
  • No capital gains on VCT.

4. Capital Gains Tax (CGT)

  • The annual CGT allowance is currently £6,000, reducing to £3,000 in the 2024/25 tax year.
  • If your non-tax-exempt investments or shares have substantial gains, consider selling to realize gains within your allowance.

5. Inheritance Tax (IHT)

  • Each tax year, you can make gifts to reduce the value of your estate.
  • Your unique circumstances and needs deserve personalized attention. Reach out to us to explore opportunities tailored to you.

Remember that taxation legislation and regulations can change, so staying informed is crucial. 

At Jerroms Financial Planning, we’re here to help you navigate the complexities of tax planning and make informed decisions. Contact our team today to discuss your financial goals and create a tax-efficient strategy.

For more insights, visit Jerroms Financial Planning.

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Please get in touch if you want to talk more about how we can help you.
We offer an initial consultation free of charge which gives us the chance to meet and discuss your needs, with no obligation.

Financial Planning in Solihull

Lumaneri House, Blythe Gate, Blythe Valley Park, Solihull, B90 8AH

0121 693 7310

Reviews and Ratings for Financial adviser Gordon Symes, Birmingham

The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based within the UK. Jerroms Financial Planning is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 300784. Registered in England and Wales under reference 4710626. Registered office address: Lumaneri House, Blythe Gate, Blythe Valley Park, Solihull, West Midlands B90 8AH.