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The pensions lifetime allowance (LTA) has been abolished, meaning there is no longer any restriction on how much you can hold in a tax-favoured pension scheme without triggering an extra tax charge. Instead, two new allowances will limit tax-free cash benefits on retirement and on death.
Although the higher rate of capital gains tax (CGT) on residential property disposals has been reduced by 4% to 24% from 6 April 2024, the March Budget was otherwise unhelpful for landlords. The abolition of the tax reliefs available for furnished holiday lettings from April 2025 will particularly hurt higher and additional taxpaying owners with big mortgages.
The latest report into HMRC performance is bleak reading. The number of taxpayers with a complex tax issue is increasing, yet it has become more difficult to get through to an adviser on a helpline.
Three quarters of self-employed people are not contributing to a pension at the moment, a survey by an investment platform has found. And half of self-employed people have never even started a pension scheme. The figures emerged from a survey of around 9,000 workers by Interactive Investor.
Much tax planning is rightly focused on the end of the tax year with a view to making the most of all available tax reliefs and allowances, but it is also important to be aware of key changes at the start of a new tax year.
From 6 April 2024, the high income child benefit charge (HICBC) threshold has increased by £10,000 to £60,000, with the rate of withdrawal halved. Longer term, the intention is that the charge will move to a household basis from 6 April 2026.
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