What you need to know about the new tax year

Tax Planning Solicitors

What you need to know about the new tax year

The new financial year started earlier this month with a number of points to note:-

  • Increase in income tax threshold from £11,500 to £11,850
  • ISA limit remains at £20,000 per year
  • Junior ISA limit increases from £4,128 to £4,260
  • Dividend allowance reduces from £5,000 to £2,000
  • Annual gift allowance of £3,000 resets so take steps to give this away (and last year’s allowance, if unused)
  • Review your income from last year and give any surplus income that you would have converted into capital away without needing to survive the usual seven years
  • Residence Nil Rate Band (RNRB) has increased from £100,000 to £125,000.  Are your wills ensuring the RNRB is used effectively on your death?

If you would like any more advice about your estate planning or tax affairs, please contact a member of our Private Client team.