5th April tax year-end thoughts from Trowers & Hamlins Private Wealth


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Whilst many will not have the appetite for investment decisions in the current climate, there may be opportunities for some 5th April year-end tax (and beyond) housekeeping.

  • Crystallising some losses now to offset chargeable gains made earlier in the tax year will not be hard for many to find with the help of their asset managers.  As ever, it is important to make use of your annual CGT allowance, if you have not already done so earlier in the tax year.
  • Now could also be the time to set up trusts for your descendants or to structure a Family Investment Company to acquire assets at keen prices, potentially without crystallising large capital gains on assets being transferred over.
  • You may want to look at making gifts of assets at identified reduced values whilst they can set the 7 year Inheritance Tax clock going at these values. The annual allowance of £3,000 per person for IHT exempt gifts also resets at the start of the new tax year.
  • Those with unused pension and/or ISA allowances may consider now to be a opportune moment to make maximum use of those allowances, ready for the moment they wish those pots to consider re-investing.
  • Some banks may even be willing to lend (usually against quality custodied assets) to enable speedy purchases of lower priced targets.
  • For long-term UK residents likely to become deemed domiciled in the UK for all tax purposes in April 2021, now is the time to start thinking about structuring your affairs before that happens; all too often this opportunity is lost as such structuring takes time and careful consideration.
Of course decisions should not be driven by tax savings only. Taking regulated investment advice is a must as is obtaining advice on legal diligence and tax.
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