Tax Year-End 2017 – Capture the moment
The last year has seen historic political change, and with it has come undoubted uncertainty about what the future holds. Yet it remains vital that individuals continue to take the actions needed to achieve long-term financial security, and that includes making the most of the tax-saving and investment opportunities presented by the end of the tax year.
One certainty is that the ‘lower for longer’ outlook for interest rates and economic growth poses bigger challenges for those seeking to create and maintain wealth. Money needs to be made to work harder, and all appropriate opportunities to invest tax-efficiently should be maximised.
Your ISA allowance is one such opportunity, and the government’s decision to increase the annual limit to £20,000 from April sent out a strong message about the importance of ISAs in the future personal savings landscape. It means the ISA allowance will have nearly doubled in the last decade. But for now, the current allowance of £15,240 will be lost forever unless you invest before the end of the tax year.
The government has made clear its policy on ISAs, but speculation continues over possible further changes to pensions. Those looking to achieve the retirement they hope for should consider taking advantage of higher rates of tax relief on pension contributions while they are still available.
For individuals looking not just to secure their own financial future but also help other generations of their family, the end of the tax year also presents the last opportunity to make use of valuable gifting exemptions. There is still time to invest up to £4,080 per child in a Junior ISA, providing them with an important head start towards the financial challenges they will face.
Capture the moment - ensure you don’t miss out on the valuable tax allowances and exemptions available before 5 April.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and the value may fall as well as rise. You may get back less than the amount invested.
An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.
Request contact from a St. James's Place Partner to find out more.