The New Year is a good time to review your finances and set goals for the coming 12 months. With the tax year end in April approaching, it makes sense to ensure you’re making the most of the various tax allowances available to you.
SAVE AS TAX-EFFECTIVELY AS POSSIBLE
Don’t forget to use this year’s Individual Savings Account (ISA) allowance before 5th April. You can contribute up to £15,240 in this tax year. If you’re looking to save for children, the Junior ISA allowance is £4,080 for 2016–17.
MAKE PENSION AND RETIREMENT PLANNING A KEY OBJECTIVE
At every stage of your working life, you should save as much as possible into your pension. Consider topping up your pension whenever financial circumstances allow – there’s valuable tax relief on contributions within HMRC annual and lifetime allowances. Make sure you know your state pension age and get a forecast of how much you’ll receive. Speak to your adviser about arranging a regular review to ensure your retirement plans remain on track; if you’re nearing retirement, then their advice on how to manage your cash flow can help ensure you don’t run out of money in your later years.
PROTECT YOUR FAMILY’S FUTURE
Your life cover needs change as you reach different stages of your life. So, if you’ve moved to a bigger house, had more children, changed jobs or are planning to retire, then your insurance plans might need revising. Don’t forget you can take out cover to protect your income and insure against critical illness and unemployment too.
It’s also important to have an up-to-date Will in place to ensure family members are provided for in the event of your death.
THINK ABOUT YOUR INHERITANCE TAX POSITION
With property prices remaining high, many more people will find that their estate falls within the scope of Inheritance Tax (IHT), so planning to minimise the incidence of the tax makes good financial sense. With more and more parents and grandparents looking to pass on wealth to family members during their lifetime, it’s important to be aware that these gifts of money can potentially attract IHT.
Like many other families, you might benefit from professional advice about how best to use your IHT allowances and structure your finances to ensure that your wealth will be passed on as tax-efficiently as possible.
So, why not make 2017 the year you review your finances and ensure you have the right plans in place for the future?
The information within the article is for information purposes only and does not constitute individual advice. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Will Writing and some forms of Inheritance Tax Planning solutions are not authorised and regulated by the Financial Conduct Authority.