The UK Budget 2024 introduces several key measures that could impact your financial planning. Here are the main points:
1. Income and Capital Gains Taxes
With the rise in Capital Gains Tax rates, clients holding investments outside tax-efficient wrappers may face higher tax liabilities. Revisiting your investment strategy to minimise exposure might be necessary.
2. Inheritance Tax Changes
Inheritance tax changes, particularly the tax on unspent pension pots, may prompt clients to rethink how pension savings are managed and passed down to heirs.
3. National Insurance and Business Tax Adjustments
Business owners may face higher costs with increased National Insurance contributions. However, the raised employment allowance can offer some relief to smaller companies.
4. Support for Housing and Stamp Duty Changes
Changes to stamp duty on additional properties could affect property investors and those considering buy-to-let investments, making tax efficiency and cost planning even more crucial.
5. Rising National Living Wage and Benefits
An increase in the National Living Wage and adjustments to benefits could improve the financial outlook for younger workers and carers, while businesses may need to adapt to higher wage costs.
How Could This Impact You?
The 2024 Budget has introduced both opportunities and potential challenges for our clients. At Clarity Wealth Limited, we are actively reviewing these changes to understand their full implications on your investments, pensions, and estate plans. Adjustments may be necessary to align your strategy with the new tax landscape and to take advantage of potential benefits. Rest assured, we will guide you through this period of change and ensure your financial plan remains robust and effective.
The UK Budget 2024 introduces several impactful changes, from Capital Gains Tax rate increases to extended inheritance tax freezes, along with strategic tax adjustments for income and business reliefs. At Clarity Wealth Limited, we provide a tailored response to these updates, recommending the most tax-efficient wrappers—including ISAs, pensions, investment bonds, and general investment accounts—to reduce tax exposure while optimising your financial strategy.
Our Approach: Tailored Tax Efficiency
Each client’s plan is built around their unique needs and circumstances. By carefully selecting the right investment products, we ensure your income streams—from pensions to investment withdrawals—are optimised for minimal tax impact. This proactive approach to financial planning keeps your long-term goals at the forefront, preserving wealth and maximising growth opportunities.
We are often asked what we actually do for clients, and this is our answer:
“We map out your path to financial freedom, by providing independent, unbiased, tax-efficient investment advice tailored to you and your family. We ensure that these plans are updated in line with your changing circumstances, tax legislation, economic shifts, and any other relevant factors.”
If you’re concerned about this Budget—or any future Budgets—know that we work diligently to manage these strategies for you, so you can have peace of mind amid evolving policies and markets.
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