There has never been a more important time to start lifetime planning than in the wake of the Spring Budget, according to FBC Manby Bowdler partner Sara Simson.
Sara, who is based at Redditch, said changes to key tax allowances and thresholds would have a big impact on all families’ financial planning for years to come.
From April, the annual capital gains tax (CGT) allowance will be slashed from £12,300 to just £6,000, the lowest level in 25 years. It will then be cut again to £3,000 from April 2024 in what is effectively a further tax rise.
Meanwhile Chancellor Jeremy Hunt has frozen inheritance tax (IHT) thresholds all the way through to 2028 and announced some significant changes to pension allowances.
Sara said: “The changing picture around personal taxation, inheritance rules, gifting and pensions means that lifetime planning of your finances has never been more important.
“Nobody wants an unexpected bill from the taxman when they make a bit extra money, or to worry that HMRC will take a big part of their estate when they die. That’s why it’s so important to plan your finances and work with legal experts to make sure your wishes are respected.
“Today’s Budget reinforces the need to start that planning straight away if you have not yet done so – or to review those plans you might have in place in light of the changes to allowances and thresholds.”