Time to start your year end tax planning

The next Budget could affect pensions, capital gains tax & ISAs. Make sure your year end tax planning is complete before they are announced.

The Autumn Budget may have been deferred, but the tax year clock is still ticking.

The deferral of the Autumn Budget, originally due on 6 November 2019, created several problems. It meant that the political parties went into the election with just a government sanctioned economic forecast produced back in March, alongside Mr Hammond’s Spring Statement. Plenty had changed in the intervening eight months.

At the time of writing, the next scheduled date for the Budget was unknown, although it is highly unlikely to happen before 2020. That means its arrival will probably coincide with the start of tax year end planning.

When it comes, as the first Budget following an election, it could potentially include some unwelcome measures. History (and the Institute for Fiscal Studies) show that Chancellors of all hues prefer to start off with the financial ‘medicine’ and save the sweeteners until nearer the next visit to the polls. It therefore makes sense to begin thinking about some tax year end planning before the (Winter) Budget arrives. Among the areas to consider are:

For more details on these or any other tax year end actions, please talk to us as soon as possible… and definitely before that next Budget.

The value of tax reliefs depends on your individual circumstances. Tax laws can change. The Financial Conduct Authority does not regulate tax advice. The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.