Welcome to our January/ February 2025 edition of our financial planning magazine.
Protection
Welcome to our latest issue. Like your car, your finances require consistent care and attention to keep running smoothly. Just as a regular service ensures your vehicle performs at its best and avoids costly breakdowns, a yearly financial check-up is vital to ensuring your money works as effectively as possible. On page 10, we look at why the beginning of 2025 offers an ideal opportunity to take stock of your financial health, setting the tone for a prosperous and secure year ahead.
Tax Year End
The end of the tax year is fast approaching, ending on 5 April 2025. This is your opportunity to review your annual allowances and assess how best to make the most of them. With some significant changes to tax allowances in the 2024/25 tax year and further reductions expected in the future, planning ahead is key. On page 03, we explain how to use your allowances now to maximise your wealth by leveraging tax-efficient strategies and minimising liabilities.
Estate Planning
Planning your estate is challenging at the best of times. Knowing how to mitigate your liabilities while ensuring your loved ones are cared for takes proper planning and the right tools. The 2024 Autumn Budget Statement announcements could create significant and lasting challenges for rural businesses of all sizes. Under the Chancellor’s proposed changes, from April 2026, IHT reliefs available to farms and family businesses will be restricted. Turn to page 12.
Tax Efficient Investing
Cuts to the Capital Gains Tax (CGT) exemption mean it is now more critical than ever to arrange your investments tax-efficiently. For the tax year 2024/25, the CGT allowance has been reduced to £3,000, allowing you to make tax-free gains up to this amount. However, any gains above this limit may be subject to CGT. Appropriate planning is essential to ensure your hard-earned investments work efficiently for your future. Turn to page 09 to find out more.
A complete list of the articles featured in this issue appears on page 02.
Time to reset and take control of your financial future?
The start of a new year is more than just a date on the calendar – it’s a chance to hit reset and take control of your financial future. Whether you envision a comfortable retirement, are ready to grow your investments or are focused on safeguarding your wealth, now is the time to act. We’re here to guide you every step of the way, helping you turn today’s goals into tomorrow’s achievements.
To discuss any of the issues raised in this article, please contact us. Further information can also be found at gov.uk.
Read more:
Source data:
[1] https://www.gov.uk/government/statistics/inheritance-tax-statistics-table-121-analysis-of-receipts
[2] https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk/hmrc-tax-receipts-and-national-insurance-contributions-for-the-uk-new-annual-bulletin#inheritance-tax
All Matters Financial Podcast
Dive deeper into the topics mentioned on this insight and more with our All Matters Finance Podcast. Click the link below:
Personal circumstances differ and not all of this information is applicable to every client and/or their business, this information is general in nature and should not be relied upon without seeking specific professional financial advice.
The Financial Conduct Authority (FCA) does not regulate tax advice, estate planning, trusts or will writing.
The content in this article is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice.
Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.
Thresholds, percentage rates and tax legislation may change in subsequent finance acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.
Pareto Financial Planning Limited is authorised and regulated by the Financial Conduct Authority (FCA).
