The end of the tax year looms

We are now just under one month away from the end of the tax year 2013/14. 

The last 18 months has seen a transition in financial services after the implementation of the now replaced Financial Services Authority (now the Financial Conduct Authority) Retail Distribution Review (RDR). We have seen the distribution of financial advice changing across the High Streets (and other locations) of the UK and many clients no longer receive financial advice service from organisations, such as their retail banks. With this in mind, it is very easy to forget or not be prompted to note the end of the tax year and some of the allowances that are available to individuals in the UK and it is normally sensible they try and use these allowances before they are lost.

Good examples of this would be the ISA allowance and also the Capital Gains tax allowance in this tax year.

ISA 2013/2014

As a reminder, the maximum ISA allowance in this tax year is £11,520 (to a Stocks and Shares ISA) or alternatively you can split the investment with £5,760 going into a deposit ISA and £5,760 going into a Stocks and Shares ISA.

The new allowance in the new tax year 2014/15 is £11,880 and in our experience many clients try and use the ISA allowance early in the new tax year, which starts on 6 April 2014, to allow their investments to grow on a tax efficient basis over the coming months.

Capital Gains Tax 

It is also important to remember that where available individuals have a Capital Gains tax allowance of £10,900 and if this gain can be used prudently during the tax year, it would be sensible to do so. The new Capital Gains tax allowance for this tax year 2014/15 is £11,000.

Trust Allowances 

For some Trusts this Capital Gains tax allowance is also available, but at half the level noted above for individuals.

I am sure that we will see much more press in the coming weeks, with regards to using these allowances as we approach the end of the tax year and if you would like advice with regards to these arrangements then please contact the team at Chapters Financial who will be able to guide you and implement where appropriate these opportunities.

No individual pension/ financial advice is provided during the course of this blog.

Keith Churchouse FPFS
Director
Chartered Financial Planner
ISO 22222 Personal Financial Planner

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.