Make the most of your 2020-21 reliefs and allowances
Whether you are planning to implement immediate pre-3 March planning, or looking to ensure you have used available reliefs before 5 April, we are able to assist you in considering the right steps to take.
Exhausting, relentless and unprecedented are just some of the words most used to describe 2020. Whatever word you might use there is no doubt that the events of 2020 will have a longer-term impact on our lives and our finances.
The Chancellor will announce his budget on 3 March and there has been much speculation on whether this will herald significant changes to capital gains tax and inheritance tax or indeed whether a wealth tax could be introduced. We cannot know what changes will be made or when but irrespective this is a good opportunity to review your position for 2020-21 to ensure that you have made best use of all current available reliefs and allowances.
Our top three considerations before the 3 March would be:
- Should you realise capital gains especially if you would be planning to realise assets in the short to medium term in any event?
- Would it be beneficial to consider advancing lifetime gifts?
- Should you consider additional pension contributions or withdrawals at this time?
We have attached a checklist for you consider whether there are actions you should take before the 5 April and indeed if possible, you may wish to consider whether any of these should be undertaken before the 3 March. You should also discuss any plans with your financial advisor or wealth manager as appropriate.
However, if a transaction cannot be concluded before 3 March you may prefer to await the outcome of budget announcements rather than risk an increased tax cost.
How we can help you
Whether you are planning to implement immediate pre-3 March planning or looking to ensure you have used available reliefs before 5 April we are able to assist you in considering the right steps to take. Whilst we are not currently able to meet in person as normal our experts are available to assist and please contact us to arrange a time to speak.
For more information
If you have any questions about the key points in the PDF or how any aspects of your tax and financial planning may be affected, please call us to discuss them: