Now we are into Q1 of 2024, have you considered how best to maximize the allowances that are available to you? We usually find that the latter part of the tax year presents an opportunity to get your financial ducks in a row and ready for the start of a new tax year.

It’s always a good idea to take advantage of your annual tax reliefs and allowances whenever you can and thinking about this now, gives us plenty of time ahead of the end of the financial year (April 5th 2024). Not only does it mean that you don’t pay more tax than necessary, it also helps to improve your outcomes and makes it easier to achieve your financial goals.

Here is a short summary of some of the available allowances within the current tax-year (2023/2024):

Most allowances work on an annual basis and where they are not used, they are lost. There are, however, two exceptions: pensions and the IHT gifting allowance. Carry-forward rules enable you to use any unused pension allowances from the past three years, while any unused IHT gifting allowance from the previous year can be used. This means a couple gifting for the first time could legally gift £12,000 tax free to their family and, in certain circumstances, up to £180,000 could be invested directly into your pension.

We often see pension carry-forward being used by company directors as their profits begin to increase and their tax position and future plans begin to become a greater priority. Did you know that company profits can be extracted, by way of a direct pension contribution, meaning that there is no corporation or personal income tax to pay on the contributions that are being made to the pension? This gives a direct saving of 25% in the current financial year, in tax relief immediately.

We offer a no-obligation financial or pension review, to help you get to grips with your current and future financial position. One client, when questioned about our service*, said this: “I was looking for help with my pensions, having worked across multiple companies, these were spread out and I had no idea of what I should be doing with those. “Charlotte took the time to look at all my pensions to ensure that I am maximizing my pension offering. She is also always on hand to offer advice and support, whether this is for investments or financial planning, she really does go above and beyond! “The outcome was better than I hoped. I am not sure Charlotte could have improved on her service any further, she is now my go to financial advisor and is assisting my wider network.”

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. 

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.

*The testimonial included above has been gathered and displayed directly through Vouched For and has not been verified by SJP.

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