One surprise in the spring Budget was the chancellorís decision to cut the tax-free dividend allowance from £5,000 to £2,000 from April 2018. Although the benefits are reduced, it is still worth couples redistributing investments between them to maximise their allowances. But perhaps of more importance is to consider transferring assets to make the best possible use of ISA and pension allowances, to provide a long-term shelter from further Income Tax, and Capital Gains Tax.
Still available is the Personal Savings Allowance, a nil-rate Income Tax band on bank or building society interest of £1,000 a year for basic-rate taxpayers and £500 for those paying at the higher rate. While not providing a complete shelter from tax on interest, the availability of the allowance continues to prompt questions over the value of ISAs as a home for cash savings.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested. An investment in equities will not provide the security of capital associated with a deposit account with a bank or building society.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.