22nd March 2024 - Jennie Snooks

The tax year end is in sight

Every year the Herbert Scott team returns from our Christmas break knowing full well the next three months will be super busy.  It can feel a little like a runner, preparing for a marathon. We need to start the New Year in peak condition, knowing that by the time we reach the last mile (for us the first week of April), we will have to dig deep to get over the finish line.

This year has been true to form, and no one at Herbert Scott will mind me saying that we are all looking a little ragged around the edges.  The things we have been doing include :

End-of-year pension contributions; these can’t be done earlier as we need to know our client’s full-year earnings before calculating how much they can add to their plans.

Mopping up unused ISA allowances; each year we ensure clients with taxable portfolios or surplus cash transfer the maximum amount into tax-free ISAs. With CGT allowances reducing significantly for most clients this transfer of wealth is more important now than ever.

Maximising use of diminishing Capital Gains Tax allowances. Following the Autumn Statement, the CGT allowance has reduced for individuals from £12,000 in 2023/23, to £6,000 this tax year, and will fall further to £3,000 in 2024/25. Selling assets to realise gains within the allowances (that are lost if unused) makes sense.

So, with two weeks to go, we are seeing a glimmer of light at the end of the 2023/24 tax year tunnel.  And just like a marathon runner breaking the tape after 26.2 miles, the 5th of April comes with a welcome sense of achievement for the team, knowing we have done the best for our clients. 

We are here for you whenever you need our help and we look forward to supporting you throughout 2024/25 and beyond.



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