Informed Choice chartered financial planner Martin Bamford was quoted in the Independent on Saturday, in an article looking at the personal financial planning steps suggested ahead of the Budget.
“The most urgent priority is making pension contributions, if you are a higher rate taxpayer and had planned to make contributions at some point during this tax year anyway,”
“There is a high probability that higher rate income tax relief on pension contributions will be abolished or scaled back even further in the Budget, so making these contributions now makes real sense.”
The article also explored taking action ahead of likely changes to capital gains tax. On this point, Martin warned not to let tax decisions dictate investments:
“We are not advising our clients to realise capital gains,” he says. “While we expect to see the rate of CGT increased in line with income tax rates and the annual exemption reduced, there is a good chance this will apply from the start of this tax year. This could mean those investors who have rushed to dispose of assets will face a hefty tax bill,” says Bamford.
“You should never let the tax tail wag the investment dog, so selling investments quickly is a foolish strategy.”
You can read the article in full here.
