Half way through the second decade in the twenty-first century is a good place to pause and reflect on the turmoil of the past five years and look ahead to what is to come. Britain has implemented Brexit, experienced the first pandemic for 100 years, lost its longest standing monarch and turned away from the Conservative government that had been in place for 14 years. The change to the economic climate both at home and abroad brought on by the Covid-19 pandemic is still being felt, and your financial strategy may need adjustment now the dust is settled to take account of these impacts
One approach we can all take to future-proofing our income is to check the government portal for your NIC contributions, which ensures eligibility for your State pension. The extended window for adding back payments stretching back to 2006/07 will finally close at the end of March 2025, so make sure you don’t leave it too late to top up if you need to.
Our other stories in this edition include:
- Time to review your estate planning? – Future changes to inheritance tax mean pensions will no longer be exempt but will count towards your total estate value as well as being subject to IHT before income tax becomes due.
- Investment in a world of higher capital gains tax – Now the CGT rate is a minimum of 18%, those with money to invest should maximise their use of tax-free investment vehicles, such as ISAs, and be strategic about using their annual exempt amount.
By the next issue of the newsletter we will be looking ahead to the start of the 2025/26 tax year. Please do get in touch if we can continue to help or provide you with more information on any of the topics covered. information on any of the topics covered.
