Quick tips to help you and your family’s financial future
Philip Hammond has delivered his latest budget yesterday. We take a look at what it means for you and your finances.
In the weeks leading up to the budget, there were concerns about further pensions tinkering and a suggestion that the government would seek to raise taxes on foreign buyers of property.
Now that we have seen and heard the full budget, we thought about how the announcements may affect your financial future.
7 key points to consider:
- The personal allowance will increase from £11,850 to £12,500 in 2019 - don't forget to use yours and your partner's allowances each year
- The personal savings allowance remains unchanged, but you should still use it - it could reduce the tax you pay on interest earned
- Don’t ignore National Insurance contributions – they are really a tax, at up to 25.8%
- ISAs should normally be your first port of call for savings - simple, and tax free
- Even if you’re eligible for a LISA, you still might find a pension is a better choice - consider the options
- Tax on capital gains is usually lower and paid later than tax on investment income - but remember, with your CGT allowance, if you don't use it, you lose it
- Investing within Trusts can save inheritance tax, but those investments suffer the highest rates of CGT and income tax.
The proper use and understanding of tax allowances can be key to your financial future.
The budget in Scotland is due on 12 December 2018. But wherever you live, we don’t recommend you wait for any budget to review your finances or overhaul your financial plans.
Use the form below or call us on 020 3823 8678, to have a complimentary review of your finances and what the budget changes could mean for your financial future.
Before you go
We hope you’ve enjoyed reading this article. Use the Get in touch box below to sign up for future investment updates. These take the form of regular market and investment updates and our 7IM webinar series.
Seven Investment Management LLP is authorised and regulated by the Financial Conduct Authority and by the Jersey Financial Services Commission. Member of the London Stock Exchange. Registered office: 55 Bishopsgate, London EC2N 3AS. Registered in England and Wales number OC378740. The value of investments may fluctuate in price or value and you may get back less than the amount originally invested. Past performance is not a guide to the future. The investments may not be suitable for everyone and if you have any doubts you should contact your investment advisor.