Another day another tax year begins
As we move into the 2009/10 tax year the ongoing increase in general UK taxation continues with a number of subtle tax increases added to the mix. However, one intriguing fact is the way in which many investors around the UK seem to wait until the very last minute of the new tax year to take advantage of their various allowances and tax planning options.
It is vital that you do the right thing at the right time but waiting until the last minute to rearrange your taxes is not always the best way forward. There are now options to take losses on shares you feel happy with for the future, transferring these into tax efficient vehicles such ISAs as well as other simple tax planning initiatives at your disposal. If for example the UK stock market was to recover over the next 12 months your situation would likely have improved significantly but tax planning may be a little more difficult as your assets and investments may have grown in value.
We are in no way advocating a rush to rearrange your investments and assets in the new tax year but it is something you may wish to consider when next talking with your financial adviser.
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