The Sun has Risen on the New Financial Year of 2016-2017

This morning saw the dawn of the new tax year, 2016-2017, and the application of many new rules which were announced in the Autumn Statement and Spring Budget.
With the turn of the tax year, it’s always a good idea to make sure that your early planning is up to scratch, fit for purpose, and in line with the new and current legislation.

Here are some early planning tips that would be worth considering:

  • The new savings income allowance of £1,000 a year for non and basic rate tax payers and £500 a year for higher rate tax payers. There is no savings income allowance for additional rate tax payers. Consider structuring cash holdings and interest bearing investment as efficiently as possible.
  • Structuring your portfolios to take advantage of the reduction in Capital Gains Tax where possible and applicable, new rates of 20% and 10% applying to all but gains on residential property and carried interests.
  • The ISA allowance remains at £15,240 this year, with the new Lifetime ISA (LISA) arriving in 2016/2017.
  • Are you using or planning use the Help to Buy ISA this year and do you know how this interacts with the full ISA allowance? It’s different for cash and investment ISAs, take care here not to exceed allowances.
  • Does the new tapered annual allowance for pension affect you? If so, consider the contributions that you are making and allow for any potential reduction.
  • Does the reduced pensions Life Time Allowance affect you? If so speak to you adviser as to whether you may be best placed to apply for Fixed Protection later this summer – there are criteria for this, which come into effect on 6th April so don’t wait until the summer to start looking into this.
  • Consider paying regular amounts into your ISAs and pensions if affordable as this stops or reduces the search for lump sums of capital in 12 months time.

The start of the tax year is often as busy as the end to make sure the planning is in place for as efficient a year as possible, so think about getting your planning head on now and making best use of everything at your disposal for the full 12 months of the new year.

If you would like a copy of our Budget Summary to help you, please email and we will send you a complimentary copy by return.

As always, if you or anyone you know, would benefit from reviewing their finances, please do get in touch.

Happy New Tax Year!!

Carrie Devonshire BSc(Hons) FPFS

Director & Chartered Financial Planner

This article is considered to be general market or informational commentary and does not constitute any type of investment or other professional advice. It is not a recommendation, nor does it take into account the investment objectives, financial situations or needs (including tax) of individual clients. This document is not intended for, and should not be construed as an offer, solicitation or recommendation to buy or sell any specific financial product or instruments, or to participate in any investment or (other) strategy. You are recommended to seek advice concerning the suitability of any investment from your independent financial adviser. Investors should be aware that past performance is not an indication of future performance and the value of investments and the income derived from them may fluctuate and you may not receive back the original amount you invested.

Athena Wealth Planning is an Independent Financial Adviser and is not tied to one product provider or marketing group. We are authorised to advise on the products of different companies. Athena Wealth Planning Ltd is authorised and regulated by the Financial Conduct Authority FRN 627636: and registered as a limited company at Companies House, England, Company number 9086612. The registered address is 61a Walton Street, Walton on The Hill, Surrey, KT20 7RZ. All comment on tax and investment is based on our understanding of current law and practice and should be referred to your accountant. We recommend that you confer with your accountant before investing in products or investments which depend on tax relief for part or all of their returns.