New (Tax) Year Resolutions
We’re well into January now and those new years resolutions have either fallen by the wayside, or you are reading this at the gym whilst drinking a green smoothie! Don’t despair, if like me those resolutions have gone out the window, you still have the opportunity to make some new ones which we will help you stick to. If you’ve been part of the Carrington Club for a while, you’ll know all the usual things we remind you about but below is a brief list of the major action points.
- Fill up your ISA and/or LISA, and make sure you fund JISAs for the kids too
- Boost your pension savings as much as you can
- Consider a VCT investment – especially if your pension contributions are limited
- Use up your IHT gifting allowances
For more details and annual investment allowances, please click HERE.
This year, there are some other interesting things (good and not necessarily as good) that we think you should be aware of.
- Boosting your State Pension by buying extra National Insurance years. This opportunity falls away on 5th April 2023, and although we can’t actually do this for you, it’s definitely worth having a look at your NI record to see if there is some capacity. The first step is to check the gov.uk website (https://www.gov.uk/check-state-pension) to see if there are any gaps in your NI record – we recommend getting in touch if you are intending to explore this further as it can prove to be complicated.
- The Capital Gains Tax Allowance (the amount of profit you can make free of tax) reduces from £12,300 to £6,000 on 6th April 2023 and then to £3,000 from April 2024. This is just something to be aware of if you need to take anything from your taxable investments or are planning to sell an asset.
Now more than ever, we need to take advantage of as many allowances as we can – who knows how much longer they will be available for. We’ll be back in touch with more reminders as we get closer to April but please do get in touch now if you have any questions.
This publication has been prepared for information purposes only by Carrington Investment Consultants Ltd t/a Carrington Wealth Management and does not constitute financial or investment advice. The value of investments, and any income generated from them, will be affected by interest rates, exchange rates, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which it invests. Investors should be aware that the value of units may well fall as well as rise, is not guaranteed and that past performance is not a guide to future performance. Different funds carry different levels of risk and investors may not get back the full amount invested.
