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    March 17, 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 Review whether your business woukd benefit from taking out a further government backed recovery loan of more than £250,000, consider the requirement for personal guarantees. Ihese can be required for loans of more than £250,000 Consider the Income Tax threshold freezes - Over the course of the next business leaders and individuals 5years, despite a promise of no rises to income tax rates, the amount of tax and 80% believe they will be financially worse off and 64% fear they will you will be paying (when factoring in inflation) will go up because of the freeze in the tax-free personal allowance and 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 but the loans could be split between lenders to bring each below the E250,000 thresholds. Business owners should threshold. consider remaneration 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, taxfree personal allowances, savings allowances and dividend allowances * Utilise the current Capital Gains Tax rates. If you have any investments, think in the first half of 2022. This was a Budget to provide a COVID- weary nation with a 'financial breather but with announcements of significant increases in tax rates for companies and more subtle increases in tax for individuals about whether it is sensible to realise capital gains to make use of the annual exemption (E12,300) before the end of the tax year and indeed for next tax year. It is worthar available to all and individuals should consider investing in tax exempt savings a review of your assets to minimise in the not-too-distant future. 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 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 such as ISAS. If you would like to discuss the implications covered in this article, please don't hesitate to get in touch. + year into a pension, whilst benefitting from tax relief. Review your Will and IIT- With the IHT nil rate band having been frozen at £325,000 now for 12 years, and for a further 5 years until 2026, it's likely Daniel Grainge Partner and Head of Tax your estate will fall into the lHT net, based on house prices increases. A full Inheritance Tax review would ensure 0330 124 1399 daniel.grainge@krestonreeves.com tax from 2023. *Explore the opportunities and tax incentives presented by the creation of Freeports in the South East over the next five years. that you are taking advantage of other reliefs, including annual exemptions, gifts KRESTON "REEVES out of excess income and other lifetime planning tools. Kreston Reeves has offices across Kent, London and Sussex. www.krestonreeves.com PROMOTION Post Budget blues? Planning your finances for the future ollowing the Government's Budget on 3 March we surveyed 250 Review whether your business woukd benefit from taking out a further government backed recovery loan of more than £250,000, consider the requirement for personal guarantees. Ihese can be required for loans of more than £250,000 Consider the Income Tax threshold freezes - Over the course of the next business leaders and individuals 5years, despite a promise of no rises to income tax rates, the amount of tax and 80% believe they will be financially worse off and 64% fear they will you will be paying (when factoring in inflation) will go up because of the freeze in the tax-free personal allowance and 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 but the loans could be split between lenders to bring each below the E250,000 thresholds. Business owners should threshold. consider remaneration 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, taxfree personal allowances, savings allowances and dividend allowances * Utilise the current Capital Gains Tax rates. If you have any investments, think in the first half of 2022. This was a Budget to provide a COVID- weary nation with a 'financial breather but with announcements of significant increases in tax rates for companies and more subtle increases in tax for individuals about whether it is sensible to realise capital gains to make use of the annual exemption (E12,300) before the end of the tax year and indeed for next tax year. It is worthar available to all and individuals should consider investing in tax exempt savings a review of your assets to minimise in the not-too-distant future. 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 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 such as ISAS. If you would like to discuss the implications covered in this article, please don't hesitate to get in touch. + year into a pension, whilst benefitting from tax relief. Review your Will and IIT- With the IHT nil rate band having been frozen at £325,000 now for 12 years, and for a further 5 years until 2026, it's likely Daniel Grainge Partner and Head of Tax your estate will fall into the lHT net, based on house prices increases. A full Inheritance Tax review would ensure 0330 124 1399 daniel.grainge@krestonreeves.com tax from 2023. *Explore the opportunities and tax incentives presented by the creation of Freeports in the South East over the next five years. that you are taking advantage of other reliefs, including annual exemptions, gifts KRESTON "REEVES out of excess income and other lifetime planning tools. Kreston Reeves has offices across Kent, London and Sussex. www.krestonreeves.com