04/04/24
News, Resources, Insight and Opinion from Browning Financial Planning
Reduction in tax allowances
04/04/24
General Investment Accounts (GIAs) are subject to Capital Gains and Dividend tax but have had some fairly generous annual allowances until recently, when the Tory government started taxing aspiration.
From Saturday, all your gains will be subject to tax at either 10% or 20%, EXCEPT for the first £3000. It is currently £6000 and was previously £12,300. For investors (and business owners) who receive dividend income, you used to be able receive the first £5000 tax-free. Then it was £2000, currently £1000 and going down to £500 after Saturday. SO MAKE SURE YOU ALWAYS MAXIMISE YOUR ISA ALLOWANCE.
If you have a sizeable GIA, we can set up your account so that each year, £20,000 will be automatically transferred from it and in to your ISA. It is called a "bed and ISA". Please let us know if you are interested.