Your simple tax checklist

Tax can seem complicated, but it doesn’t have to be. Here, financial expert Andrew Hirst explains some of the key areas to think about to ensure you’re making the most of your wealth.

ISA & pensions

You told yourself you wouldn’t do it this year, but yet again you’ve left choosing your ISAs and pension funds until the last minute, scrambling to choose the best ones and send your money across.

Get a head start next year and assess your options early so you can be sure you’re making the best choice.

Capital gains tax

Start looking at the gains you have in non-ISA investments – Rishi Sunak certainly is! Start to plan which shares/funds you can sell/switch to other investments to use your tax-free capital gains tax (CGT) allowance of £12,300.

Married couples can also split investments evenly between them to make the most of their two CGT allowances. At present this is £24,600 of gains, tax free, a year!

Child trust funds and junior ISAs

If your child has a maturing child trust fund or a junior ISA, it’s worth exploring the options to reinvest this money. I’m helping my daughter transfer her money to a stocks and shares ISA, and we are also putting £4,000 into a lifetime ISA to get £1,000 (25%) bonus. One day she’ll be able to use these funds for a house deposit – although hopefully many years from now, as I quite like having her at home!

Cash ISA & junior ISA for under 18s

If your children are aged 16 or 17, you can utilise funding both a cash ISA (up to £20k) and a junior ISA (up to £9K) until age 18. It’s a nice intergenerational and inheritance planning vehicle for parents/grandparents that is often missed… or found out too late!

Live the life you want

Whilst these are good starting points, it’s always best to speak to a financial adviser to alleviate the stress of tax planning and make your money do the work for you (rather than the other way around!).

Get in touch with our friendly experts today to find out how Equilibrium can make your life better at askus@equilibrium.co.uk or on 0808 156 1176.