New Year’s Wealth Check
An ideal opportunity to take stock of your financial health.
The end of the tax year is fast approaching, ending on 5 April 2025. This marks a crucial moment to review your annual allowances and evaluate how best to maximise them.
With significant changes to tax allowances in the 2024/25 tax year and further reductions expected in the future, early and thoughtful planning is essential.
Like your car, your finances require regular care and attention to stay in optimal condition.
A New Year’s Wealth Check ensures your money works as efficiently as possible, helping you avoid costly oversights and setting you up for long-term success.
On page 10, we delve into why the start of 2025 is the perfect time to reassess your financial health, helping you set the tone for a prosperous and secure year ahead.
Review and Maximise Your Allowances
The tax year ends on 5 April 2025, presenting an opportunity to make full use of your available allowances. Changes to tax rules in the 2024/25 tax year mean that planning ahead is more important than ever.
On page 03, we outline how to optimise your wealth by leveraging tax-efficient strategies and minimising liabilities.
Here are a few areas to consider:
- Individual Savings Accounts (ISAs): You can contribute up to £20,000 into ISAs this tax year. If you haven’t yet made the most of this allowance, now is the time to act. For example, a cash ISA could provide a secure option for savings, while a stocks and shares ISA may offer growth opportunities for long-term investors.
- Pension Contributions: Ensure you’re taking advantage of tax relief on pension contributions. For higher-rate taxpayers, contributions up to the annual allowance can significantly reduce your taxable income.
- Gift Allowances: Each year, you can gift up to £3,000 without triggering inheritance tax (IHT). Spreading gifts across family members is a simple yet effective way to manage your estate efficiently.
Estate Planning Amid Legislative Changes
Planning your estate has never been more important. With the recent 2024 Autumn Budget Statement introducing changes to inheritance tax (IHT) reliefs for rural and family businesses, ensuring your loved ones are well cared for demands proper tools and strategies.
From April 2026, IHT reliefs for farms and family-owned enterprises will be restricted, posing potential challenges for many families.
On page 12, we explore strategies to help you navigate these changes, mitigate liabilities, and preserve your legacy.
Adapting to Lower Capital Gains Tax Exemptions
Reductions to the Capital Gains Tax (CGT) exemption mean that tax-efficient investment planning is now more critical than ever. For the 2024/25 tax year, the CGT allowance has been cut to £3,000.
Any gains above this threshold may be subject to CGT, potentially impacting your investment returns. For example, if you sell shares or a property with gains exceeding this limit, careful planning can help you minimise your tax liabilities.
On page 09, we provide insights into how to structure your investments to work efficiently for your future, from utilising your CGT allowance to considering alternative investment vehicles.
Get Ahead of the Curve
By addressing these areas early in the year, you can position yourself to take advantage of available opportunities while minimising potential risks. Don’t wait until the last minute; a proactive approach can make a significant difference in achieving your financial goals.
Turn to the relevant pages for more detailed advice, and let us help you make 2025 a year of financial strength and resilience.
If you have any questions or need assistance, our team is here to guide you every step of the way.
Read the full article here
New years wealth checklist
