{"id":11140,"date":"2025-02-06T18:00:02","date_gmt":"2025-02-06T18:00:02","guid":{"rendered":"https:\/\/sbwm.uk\/?p=11140"},"modified":"2025-02-06T18:00:03","modified_gmt":"2025-02-06T18:00:03","slug":"from-new-year-to-year-end-keeping-a-tax-planning-resolution","status":"publish","type":"post","link":"https:\/\/sbwm.uk\/v3\/news\/from-new-year-to-year-end-keeping-a-tax-planning-resolution\/","title":{"rendered":"From new year to year end \u2013 keeping a tax-planning resolution?"},"content":{"rendered":"<!-- wp:themify-builder\/canvas \/-->\n\n<p><b>As 2025 gets under way, it is once again the time of year to start considering your tax year-end planning.<span class=\"Apple-converted-space\">\u00a0 \u00a0<\/span><\/b><\/p>\n<p>The early months of the year are the time to undertake year-end tax planning. Unsurprisingly, the traditional drivers have been the tax year-end (Saturday 5 April 2025) and the Spring Budget. On this occasion, after last October\u2019s blockbuster, there is no Spring Budget, although Rachel Reeves will deliver a Spring Forecast in late March. In the wake of that Autumn Budget, there is plenty to consider:<\/p>\n<ul>\n<li><b>Pension contributions:<\/b> The Budget announcement that pensions will fall within the scope of inheritance tax (IHT) from 2027\/28 makes the review of pension contributions slightly different from previous years. For most people, pensions remain a highly tax-efficient way of saving for retirement, but for the wealthy few unconcerned about retirement income, they are no longer the estate-planning tool of choice.<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li><b>Capital gains tax (CGT): <\/b>Capital gains tax rates increased in the Budget to 24% for higher and additional rate taxpayers and 18% for other taxpayers. If you have not used your annual exemption \u2013 now just \u00a33,000 of gains \u2013 you should consider doing so after what has been a generally good year on the world\u2019s stock markets.<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li><b>IHT: <\/b>Now is the time to use your annual exempt amount (\u00a33,000 per tax year) for 2024\/25 if you have not already done so. If you did not use your full exemption from 2023\/24, you can also gift the unused element after you have exhausted this year\u2019s exemption. <span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li><b>Marriage allowances:<\/b> If you or your spouse\/civil partner had income below the personal allowance in 2020\/21 (\u00a312,500), you have until 5 April 2025 to claim the marriage allowance for that year (\u00a31,250), which could produce a tax saving of up to \u00a3250. A claim can only be made if the other partner was a basic rate taxpayer (starter, basic or intermediate rate in Scotland) in that tax year. The same principle applies (with an allowance of \u00a31,260) for 2021\/22 and subsequent years onwards.<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li><b>Threshold planning: <\/b>The long-term freezes that have applied to income tax allowances and many thresholds may mean you move into a higher tax band in the coming tax year. Equally you could find yourself crossing the unchanged \u00a360,000 threshold for the high-income child benefit charge or the \u00a3100,000 threshold for personal allowance taper and loss of tax-free childcare. Among the strategies to beat the unmoving thresholds, you could bring forward income into 2024\/25 (e.g., by closing an interest-paying account) or move some income-generating investments across to your (lower income) spouse or civil partner by 5 April.<\/li>\n<\/ul>\n<p>It is best to seek advice before taking any action \u2013 in tax, errors can be costly and difficult to unwind. Please contact your adviser on 01689 667405 or Email <i>admin@sbwm.co.uk<\/i> for further information.\u00a0<\/p>\n<p><b><i>The value of your investment and any income from it can go down as well as up and you may not get back the full amount you invested.<\/i><\/b><\/p>","protected":false},"excerpt":{"rendered":"<p>As 2025 gets under way, it is once again the time of year to start considering your tax year-end planning.\u00a0 \u00a0 The early months of the year are the time to undertake year-end tax planning. Unsurprisingly, the traditional drivers have been the tax year-end (Saturday 5 April 2025) and the Spring Budget. On this occasion, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":11141,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wds_primary_category":160,"footnotes":""},"categories":[160],"tags":[],"class_list":["post-11140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"builder_content":"","_links":{"self":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/posts\/11140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/comments?post=11140"}],"version-history":[{"count":0,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/posts\/11140\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/media\/11141"}],"wp:attachment":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/media?parent=11140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/categories?post=11140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/tags?post=11140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}