Following the Autumn Budget, many investors and savers will be wondering how best to manage their money moving forward. If you are tax planning in Cheshire, check out these methods of maximising your financial position in later life.
The freeze on tax thresholds means more savers will be pulled into the higher rate tax band, with the reduction in the personal savings allowance from £1,000 to £500. Following the rise in capital gains tax and the increased tax rates on investor’s profits, it is also vitally important you protect your investment profits and savings interest from the taxman, and one way of doing this is with a cash Isa or a stocks and shares Isa.
A cash Isa is a special individual savings account where you can earn tax-free interest. Some current deals at over 5% are considerably more generous than an average high street bank offering of under 1.75%. A stocks and share Isa, meanwhile, enables you to select your investments while swerving capital gains tax on profits or a dividend tax on income.
In any 12-month period, people over 18 can pay £20,000 of new money into Isas, and those savings and investments will allow your returns to grow tax-free over time in a protected account. This is why it can be smart move to shift assets there from other taxable accounts – but it’s always best to check with an adviser first, or conduct market research by shopping around for the best Isa rates.
