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Be Tax Smart
How to make the most of your money The 5th April is an important day each year as it is the end of the tax year.
Who?
You might not think this applies to you as you don’t complete a tax return but actually it applies to everyone – even children!
Why?
Allowances – use them or lose them! Everyone has allowances/limits which the Government/Inland Revenue/ HMRC/’Tax Man’ (whatever you want to call them!) give to each of us. My rule of thumb is that if they have limits then that is as a good thing and should be maximised. This is because they are giving you something back in the form of tax benefits, therefore making your money go further!
What?
ISAs: Adults can pay in £20,000 and children £9,000 per tax year This means any returns are free from Capital gains tax and income tax – which must be good! Saving you paying tax on money you have probably already paid tax on when you earnt it! There are two main types: Cash ISAs • Usually held with the bank or building society • Not as beneficial as they used to be due to additional tax rules Stocks and Shares ISAs • Provides simple access to the investment world • Any growth/return is free from Capital gains tax and income tax ISAs can be a way of saving tax efficiently when you are working, and then when you retire, can provide you with a tax-free income to help enhance your pension. Pensions: • Not just for retirement but a very tax efficient way of investing. • Subject to certain limits and conditions Tax relief is available on contributions. Other tax allowances: • Capital Gains tax – this is changing in April so get advice on this now! • Personal savings allowance • Dividend allowance • Annual gift allowance
How?
A simple way of making sure you are staying tax efficient is to speak to an adviser like us. We help you keep on top of changes and give you a ‘heads up’ on tax allowances to help you make the most of your money and achieve the future you imagine in later life.
Lynne Gadsden FPFS
Grovewood Wealth Management Ltd
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. The value of any tax relief is generally dependent on individual circumstances. Cash ISAs are not available through St. Jame’s Place. Our online Insights hub hosts latest articles and much more, from market updates to investment views and financial advice visit; www.grovewoodwealth.co.uk/insights Grovewood Wealth Management Ltd is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group’s wealth management products and services, more details of which are set out on the group’s website www.sjp.co.uk/products. The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.
SJP Approved 9/2/2023
26 | MARCH 2023 | SO Magazine