Here’s to a New Year and a fresh start with many of the world celebrating this in different ways and although it’s the same day around the world, the day begins at different times, with Kiribati being the first country to celebrate the New Year, which is an island in the Pacific Ocean.
As I have written previously, I think the New Year is a time to really look at where we are and what changes we would like to make. Based on this many of us make resolutions to help ensure we stick to these changes.
For us, as financial advisers after the first Labour budget in October 2024 we are having to revise many of our clients financial plans due to these budget changes. I would have thought that the majority of us are aware that the first Labour budget included many tax changes as it has been widely publicized.
The questions people should be asking themselves are, do any of the changes affect them and if so, then how? If the answer to this question is yes, are there any actions or amendments needed to be made to their financial plans?
For many of our clients the proposal that from 6 April 2027, unused Pension pots and death benefits from Pension schemes will form part of the deceased member’s estate for inheritance tax (“IHT”) purposes, will need some consideration. Often with Tax changes, there may be other things that can be impacted and with this change it may also affect a person’s entitlement to The Inheritance Tax Residence Nil Rate Band (RNRB).
I have always said that the main benefit of using an adviser is as a sounding board and a coach. I often compare myself to a personal trainer, for example anyone who wishes to train themselves up for a marathon and uses a personal trainer to assist, may be able to complete in a better time. So if you would like some advice on how the budget affects you then why not pick up the phone today and book a free without obligation consultation.
• The content included on this page is based on our understanding of the UK tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances.