Spring Forecast 2024

The Spring Budget

The Chancellor of the Exchequer will be announcing the Spring Budget on 6th March 2024. The budget is an opportunity to update the public on the state of the UK economy since the last Autumn Statement which took place in November. Any future economic plans set for 2024-25 would usually be announced then also.

The statement will be made at the House of Commons, alongside a forecast from the Office for Budget Responsibility (OBR).

Things to think about

The starting point is to ask the question, with any UK budget changes, are you and/or your partner’s hard-earned savings, investments and assets impacted by way of:

  • Welfare benefits.
  • The amount held in you or your partner’s savings, investments and assets.
  • The tax treatment on any profit / gains on savings, investments and assets?

Three sense checks:

1.         Right name?

In this context, ‘right name’ means, is the asset held in the right name at the time the asset is to be needed and distributed?  This could be as simple as ensuring:

  • You and your partner’s tax codes are correct and are being applied accurately.
  • Your cash / money on deposit in bank accounts is spilt between you and your partner to ensure you are allocating the interest received by making best use of your personal allowances.
  • You and your partner are making pension contributions to the right person’s pension fund to claim the tax relief now, but not lose money by paying too much tax when either of you take your pension.

2.         Ownership

Have you placed you and your partner’s savings, investments, and assets under an appropriate trust to:

  • Pay the right money to the right person or charity at the right time.
  • Avoiding time consuming wait for probate.
  • Not lose money by paying too much inheritance tax, legally and ethically?

Are you and your partner’s savings, investments and assets held in single names, jointly owned or (and please forgive the jargon), cross proposed? You and your partner could be missing out on making use of your joint allowances, where they are applicable.

3.         Tax Shelter

Are you and your partner’s savings, investments and assets in the right tax shelter allowing you to:

  • Reclaim tax back that you are owed – for example on pension contributions.
  • Save tax on the future growth of your asset – for example an ISA.
  • Defer tax until you want to access or spend the asset when your tax position and the taxation on the asset may be less than it is today?

How we can help you

We’re here to help guide you to help make sure you do not miss out on the financial planning opportunities which exist.

The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.

For ISA’s Investors do not pay any personal tax on income or gains, but ISAs may pay unrecoverable tax on income from stocks and shares received by the ISA managers.

Tax treatment varies according to individual circumstances and is subject to change.

Stocks and Shares ISAs invest in Corporate bonds; stocks and shares and other assets that fluctuate in value.

Trusts and Advice on: Cash in Deposits, Taxation, Estate Planning, Capital Gains Tax and Inheritance Tax Planning are not regulated by FCA.

Approver Quilter Wealth Limited, Quilter Financial Limited, Quilter Financial Services Limited & Quilter Mortgage Planning Limited. March 2024

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