FINANCIAL INDUSTRY NEWS

​Happy New (Tax) Year!

6 April is the start of the 2021/22 tax year. It is also a traditional time to “Spring clean”. However, April 2021 feels very different from Aprils in previous years. Perhaps, rather than getting out the dusters and paint brushes, why not consider what you would like your own plans to be?

We recommend giving some thought again about what you want to do with your money. Our main purpose is to make sure you are still driving forward with your dreams and ambitions and that your money is helping you do this.

We would love it if, next time we meet, you are able to share your latest thinking and ambitions, so that we can help you turn your dreams into reality and ultimately into lasting memories!

We have jotted down a few housekeeping points below, to remind you of a few items to consider as we start this new tax year:

  • Make use of your £20,000 ISA Allowance
  • Additional pension contributions (within the various allowances)
  • Gift Aid charitable gifts – www.gov.uk/donating-to-charity/gift-aid
  • Marriage Allowance – www.gov.uk/apply-marriage-allowance
  • £3,000 Annual Gift Allowance.

For those who submit a tax return to HMRC, if you submit this online it will need to be done by 31 January 2022. However, once you have received all the documentation required to do the tax return - which should typically be by June/July - why not submit it then? That way, instead of potentially scrambling around in January 2022 looking for information, you can sit back comfortably, knowing that the job is done.

So, why not consider the new tax year as a good time to take stock of your latest dreams and ambitions and a chance to get everything in order before the Summer kicks in. If not, before you know it, we will be celebrating 2022 and you could find yourself rushing around sorting out tax returns!

We hope you have found the above helpful. Please do not hesitate to contact us if you have any questions.

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​Spring Budget 2021:​
Key Points for Savers & Investors

Income tax

  • Personal Allowance increases to £12,570 and the threshold above which higher earners start paying 40% tax also increases to £50,270.
  • However, these allowances have then been frozen at these levels until 2025/26.

Pension changes

Standard Lifetime Allowance

  • The standard Lifetime Allowance for pensions will remain at £1,073,100. This level has also been frozen until 2025/26.

Annual Allowance

  • There are no changes to pension annual allowances (AA). The standard AA remains at £40,000 and the high income AA taper rules also remain unchanged. 

Individual Savings Account (ISA)

  • The ISA annual subscription limit for 2021/22 will remain unchanged at £20,000.

Capital Gains Tax

  • The Capital Gains Tax Allowance will remain at £12,300 and is frozen at this level until 2025/26.

Inheritance Tax

  • The Inheritance Tax Nil Rate Band will remain frozen at £325,000 until 2025/26.
  • The Residence Nil Rate Band also remains frozen at £175,000 until 2025/26.

General Tax issues

  • Corporation Tax is increased to 25% from 2023/24 for Companies that make profits in excess of £250,000. Companies that make profits of less than £50,000 will maintain a Corporation Tax rate of 19%. Those companies that make profits between these two levels will pay a Corporation Tax rate that is somewhere between these two rates, but that rate has yet to be announced. 
  • National Insurance Contribution tax threshold increases to £9,568.

​Stamp Duty Holiday

  • The level at which Stamp Duty on house purchases is payable was increased from £125,000 to £500,000 last year. This Stamp Duty “holiday” was due to end on 31 March 2021 and has now been extended until 30 June 2021. It will then be reduced to £250,000 and won’t go back to £125,000 until 30 September 2021.

If you would like to discuss your current financial planning arrangements in light of any of these changes, please do not hesitate to contact us.

If you would like to print this article or download it to
your computer as a PDF please click on the image here.

County Financial Limited is authorised and regulated by the Financial Conduct Authority. Financial Services Register No: 145831 www.fca.org.uk/register.

County Financial Limited Registered Address: Windmill Farm Business Hub, Bowstridge Lane, Chalfont St Giles, Bucks HP8 4RG. Registered in England & Wales, No. 3467400.

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