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Financial focus: Will I pay more tax on my second property?

Financial focus: Will I pay more tax on my second property?
Over the last few years tax rules have changed, making the ownership of second properties more complicated and often, more costly. The new rules focus on 'second' properties, which can be defined as any property you own that is not your main residence.This could therefore include any of the following:Buy-to-let propertiesSecond homesHoliday homesIn...
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185 Hits

Financial focus: Which ISA is better? ‘Help to Buy’ or ‘Lifetime’?

Financial focus: Which ISA is better? ‘Help to Buy’ or ‘Lifetime’?
George Osborne launched the 'Help to Buy' ISA back in late-2015 as a way of helping struggling first-time buyers get that precious first foot onto the property ladder. They are still available today, but for a limited time only. Customers will not be able to open a new 'Help to Buy' ISA after the 30th November 2019. The 'Lifetime' ISA then came alo...
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297 Hits

Financial focus: Should you use your bank card abroad for your holiday spending money?

Financial focus: Should you use your bank card abroad for your holiday spending money?
The holiday season is in full swing, and those of us fortunate enough to be able to, are packing our bags, braving airport security and jetting off in search of some sunshine, and possibly a beach. There's lots to think about as a holidaymaker. How much clothing do you pack? How early do you have to get to the airport? Are any liquids less tha...
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  289 Hits
289 Hits

4 reasons why you should use your ISA allowance at the start of the tax year instead of the end

4 reasons why you should use your ISA allowance at the start of the tax year instead of the end
Most investors understand that when we invest to see our money grow, we usually do so over the longer-term. This means that our 'not-so-secret' ingredient when investing is time. So why then do many investors wait until the end of the tax year to utilise their annual ISA allowance? Lots of us know that the early bird catches the worm, but apparentl...
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572 Hits

Financial Year End – the Clock is Ticking

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With the financial year end fast approaching, make sure that you have invested in your ISA and pension in order to take advantage of allowances and tax breaks.

With the end of the financial year in sight, it is time to start making sure you have invested into your ISA, as if you have not utilised your 2017/18 ISA allowance before the 6th April, it will be lost. Additionally, the same applies to anyone who has not made their pension contributions. This investment limit is not as straightforward as with an ISA; it is recommended to speak to a wealth management expert to understand more about this.

what are ISAs?

ISAs (Individual Savings Accounts) are tax-efficient investments on which you will not have to pay tax. For other investments, you may have to pay tax on the interest or dividends you earn, or on any capital gains made. By investing in an ISA, these taxes are not payable and therefore an ISA is an excellent way to invest to avoid paying additional taxes on the potential income and growth you could achieve.

This year’s contribution allowance is £20,000 per individual, which will remain the same for the 2018/19 tax year. There is no need to wait until the end of the year to make your ISA contribution, however, as if you make next year’s contribution in April, you get an additional 12 months of tax-free growth.

Why save into a pension?

Like with ISAs, pensions are a tax-efficient investment which can grow without the constraints of tax. This will help your investments grow faster, as the gross compounding can make a significant contribution to your long-term investment growth. However, the biggest benefit of a pension is that you are able to claim tax relief on your contributions.

The tax relief on a pension contribution means that a basic rate taxpayer who contributes £800 into a pension will immediately see the value of their pension increase to £1,000. This represents a return of 25%. For additional and higher rate taxpayers, this increases to 60% and 82% respectively. Additionally, when it comes to drawing on your pension, you will receive 25% tax-free.

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578 Hits

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