Review, Plan & Save Tax
A new tax year and a good opportunity to review your finances and financial planning. When was the last time you looked at all your existing policies, whether they are life cover, pensions or savings plans? Are they value for money? Are they still doing what they were intended for?
The personal allowance will increase to £12,500 for 2019/20.
Since 6 April 2015 it has been possible for one spouse to transfer 10% of their personal allowance to the other spouse provided neither spouse is a higher or additional rate taxpayer.
l For 2019/20 the threshold for the start of higher rate tax on taxable income (outside of Scotland) has increased to £37,500.
A 45% tax rate applies to taxable income that exceeds £150,000.
l People with income in excess of £100,000 lose some, or all, of their standard personal allowance.
l A £2,000, a year, 0% tax band also applies to dividend income. Above this 0% tax band dividends are taxed at:
n 7.5% for basic rate taxpayers; n 32.5% for higher rate taxpayers n 38.1% for additional rate taxpayers. l Shareholding directors who draw remuneration from their company in the form of dividends will need to base any tax planning on the above dividend allowance and tax rates.
Investors who receive more than £2,000 a year in dividends from investments may also need to review their investment strategies. l Tax increases can be combatted in a number of ways including: n Maximising the use of all of a couple’s allowances, reliefs and exemptions. n Planning to use the allowances on savings income. n Planning around dividend taxation. n Using tax-efficient investments.
For a free, no obligation discussion please contact Andy Street at Andrew Street Wealth Management Ltd – mobile: 07767 081051
email: email@example.com or visit my website at www.andrewstreetwm.co.uk