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    March 18, 2021
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PROMOTION Post Budget blues? Planning your finances for the future ollowing the Government's Budget on 3 March we surveyed 250 government backed recovery loan of more than £250,000, consider the requirement for personal guarantees. These can be required for loans of more than £250,000 but the loans could be split between lenders to bring each below the to income tax rates, the amount of tax you will be paying (when factoring in inflation) will go up because of the freeze in the tax-free personal allowance and business leaders and individuals and 80% believe they will be financially worse off and 64% fear they will thresholds. Business owners should now fall into the inheritance tax net. There was positivity for the future, with 25% expecting to see the economy pick up by September, 23% by the end of this year and a further 23% expecting to see recovery consider remuneration planning to take advantage of different reliefs, married couples should consider splitting income producing assets between them to take full advantage of the lower tax bands, tax free personal allowances, savings allowances and dividend allowances £250,000 threshold. Utilise the current Capital Gains Tax rates. Ifyou have any imvestments, think about whether it is sensible to realise capital gains to make use of the annual exemption (E12,300) before the end of the in the first half of 2022. This was a Budget to provide a COVID- weary nation with a 'financial breather available to all and individuals should consider investing in tax exempt savings tax year and indeed for next tax year. It is but with announcements of significant increases in tax rates for companies and more subtle increases in tax for individuals worth a review of your assets to minimise any future tax liabilities on sale. Make the most of tax relief on pension contributions, particularly if you are a higher rate taxpayer. Depending on your carnings and income levels, you may be able to contribute up to £40,000 each tax year into a pension, whilst benefitting from tax relief. such as ISAS. If you would like to discuss the implications covered in this article, please don't hesitate to get in touch. + in the not-too-distant future. There are measures that can be adopted to minimise the impact of the Badget and we recommend businesses and individuals consider the following Explore opportunities to accelerate the timing of any capital expenditure programmes to benefit from the 130% Super Deduction tax relief. *Look to obtain a cash flow advantage now by carrying back losses up to three years, weighed against offsetting these against future profits that might be taxed at the higher rate of corporation tax from 2023. Explore the opportunities and tax incentives presented by the creation of Freeports in the South East over the next five years. Review whether your business would Review your Will and HT- With the IHT nil rate band having been frozen at £325,000 now for 12 years, and for a further 5 years until 2026, at's likely your estate will fall into the lHT net, based on house prices increases. A full Daniel Grainge Partner and Head of Tax Inheritance Tax review would ensure 0330 124 1399 that you are taking advantage of other relefs, including annualexemptions, gifts out of excess income and other lifetime daniel.grainge@krestonreeves.com planning tools. KRESTON REEVES *Consider the Income Tax threshold freezes - Over the course of the next benefit from taking out a further 5 years, despite a promise of no rises Kreston Reeves has offices in Brighton, Chichester, Horsham, Worthing, London and Kent. www.krestonreeves.com PROMOTION Post Budget blues? Planning your finances for the future ollowing the Government's Budget on 3 March we surveyed 250 government backed recovery loan of more than £250,000, consider the requirement for personal guarantees. These can be required for loans of more than £250,000 but the loans could be split between lenders to bring each below the to income tax rates, the amount of tax you will be paying (when factoring in inflation) will go up because of the freeze in the tax-free personal allowance and business leaders and individuals and 80% believe they will be financially worse off and 64% fear they will thresholds. Business owners should now fall into the inheritance tax net. There was positivity for the future, with 25% expecting to see the economy pick up by September, 23% by the end of this year and a further 23% expecting to see recovery consider remuneration planning to take advantage of different reliefs, married couples should consider splitting income producing assets between them to take full advantage of the lower tax bands, tax free personal allowances, savings allowances and dividend allowances £250,000 threshold. Utilise the current Capital Gains Tax rates. Ifyou have any imvestments, think about whether it is sensible to realise capital gains to make use of the annual exemption (E12,300) before the end of the in the first half of 2022. This was a Budget to provide a COVID- weary nation with a 'financial breather available to all and individuals should consider investing in tax exempt savings tax year and indeed for next tax year. It is but with announcements of significant increases in tax rates for companies and more subtle increases in tax for individuals worth a review of your assets to minimise any future tax liabilities on sale. Make the most of tax relief on pension contributions, particularly if you are a higher rate taxpayer. Depending on your carnings and income levels, you may be able to contribute up to £40,000 each tax year into a pension, whilst benefitting from tax relief. such as ISAS. If you would like to discuss the implications covered in this article, please don't hesitate to get in touch. + in the not-too-distant future. There are measures that can be adopted to minimise the impact of the Badget and we recommend businesses and individuals consider the following Explore opportunities to accelerate the timing of any capital expenditure programmes to benefit from the 130% Super Deduction tax relief. *Look to obtain a cash flow advantage now by carrying back losses up to three years, weighed against offsetting these against future profits that might be taxed at the higher rate of corporation tax from 2023. Explore the opportunities and tax incentives presented by the creation of Freeports in the South East over the next five years. Review whether your business would Review your Will and HT- With the IHT nil rate band having been frozen at £325,000 now for 12 years, and for a further 5 years until 2026, at's likely your estate will fall into the lHT net, based on house prices increases. A full Daniel Grainge Partner and Head of Tax Inheritance Tax review would ensure 0330 124 1399 that you are taking advantage of other relefs, including annualexemptions, gifts out of excess income and other lifetime daniel.grainge@krestonreeves.com planning tools. KRESTON REEVES *Consider the Income Tax threshold freezes - Over the course of the next benefit from taking out a further 5 years, despite a promise of no rises Kreston Reeves has offices in Brighton, Chichester, Horsham, Worthing, London and Kent. www.krestonreeves.com