As we enter a new tax year we understand, in these challenging times for both family life and business life, reviewing tax and finances may be one of the things that becomes more important to all of us. We've produced a personal tax review to help you to identify any tax planning opportunities and take any actions required.
Following the UK Budget announcement, there are also a number of personal tax changes to be aware of coming into effect from 6 April 2021, including:
- The income tax personal allowance will increase in line with inflation to £12,570 and remain frozen until 2026.
- The UK higher rate threshold will increase in line with inflation to £50,270 and remain frozen until 2026.
- There will be no change in the current Capital Gains Tax (CGT) rates. CGT annual exemption for individuals and executors will be frozen at its current level of £12,300 (£6,150 for trustees) until 2026.
- The Inheritance Tax (IHT) nil rate band (£325,000) and the IHT residence nil rate band (£175,000) will be frozen at their current level until 2026.
- The current lifetime allowance for pension savings of £1,073,100 will be maintained until at least 5 April 2026.
It had been previously announced that the postponed reforms to the off-payroll working rules (IR35) for people contracting their services to the private sector would come into effect from 6 April 2021. The public sector are already subject to these rules. The previously announced Stamp Duty Land Tax (SDLT) 2% surcharge on all residential rates of SDLT came into effect from 1 April 2021 for residential property purchases in England and Northern Ireland.
Our tax planning guide
We’ve partnered with our financial planning business Anderson Strathern Asset Management to produce a personal tax review for the 2021/22 tax year. It gives you a useful round up of developments and helps identify the things you may need to know for the tax year ahead.
This report provides an overview of the main tax reliefs, exemptions and allowances on offer, together with some planning tips that could help you protect your wealth by maximising the tax benefits available to you while minimising your tax exposure.
You can download a copy of the review here or click on the download below.
2021/22 tax tables
You can also view and download a copy of the 2021/22 tax tables here or click on the download below.
Our Private Client service offers a full portfolio of advisory services in tax planning, asset protection and family advice. It is a full-service solution that is always tailored to meet individual and family needs.
For further tax planning advice, please contact Martin Campbell or Alison Pryde, or speak to your usual Anderson Strathern contact. We would strongly recommend that you seek specialist advice tailored to your own circumstances before taking any action.
For financial planning and investment advice, please contact Graham Clark or speak to your usual Anderson Strathern Asset Management contact.