With continued reductions in both the Capital Gains Tax Allowance Threshold and the Dividend Allowances many people with investment income strategy may be in a tax paying situation for the first time and will be required to complete a self-assessment tax return.
This will affect those who own investments outside of an ISA or intend to sell a second home or another valuable asset, it’s crucial to note forthcoming reductions in tax-free allowances.
Under current rules, you can make gains of up to £6,000 before paying any tax (down from £12,300 in 2022-23). From April 2024, the capital gains tax allowance will be reduced again to just £3,000. Similarly, the dividend allowance was halved from £2,000 in 2022-23 to £1,000 in 2023-24. It will be further reduced to £500 after April 2024.
This means many individuals who have managed investments (where your broker will buy or sell shares for you as well as receive dividends to your fund) may go above the thresholds in either capital gains or dividends or both! and be required to declare this within a self-assessment tax return.
If you are not confident in completing a tax return yourself, we can cover every aspect for you including filing and telling you when and how to pay your tax due. We are here to help and our prices start from £180 including VAT so please contact us for more details.
Call us on 01285 339000
www.thenumbercrunchers.cloud
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