January 2023 Newsletter | Cylchlythyr Misol Ionawr 2023
Here are some financial matters to ponder at the start of the New Year:
a) Do you have a clear, up to date will? Huw can draft your will and check your inheritance tax position. A local bilingual solicitor will then draft your will.
b) If you need a Power of Attorney for yourself or an elderly relative, please contact Huw.
c) Are your savings sitting in a low-interest account? As the Bank of England have raised their base rate of interest several times in 2022, with some suggesting that peak rates will be reached by mid-2023, it may be beneficial to take advantage of the current, higher interest rates on savings accounts. Comparison websites can show you the available options.
d) Check your bank account to cancel obsolete direct debits / standing orders.
e) How much are you paying for home/car/business insurance? If you have been using the same insurer for many years, the premiums may no longer be competitive. Check your premiums are reasonable by using price comparison sites.
f) Are you over 45? Check your State Pension forecast on the Gov.uk website of the same name. Individuals generally need at least 35 qualifying years of National Insurance (NI) payments to qualify for a full State Pension.
If you have gaps in your NI record going back to 2006, you can top up these years, but the deadline for this is April this year. From April 2023, you can only go back 6 years to top up any payments on your NI record.
g) Do you have any assets you are considering selling? You may wish to sell assets such as houses or investments before April 2023. The tax-free capital gains tax allowance of £12,300 will be reduced to £6,000 in April 2023 (and halved again to £3,000 from April 2024). This will lead to higher capital gains tax of over £1,000 per annum for anyone selling assets from April 2023.
If you are contemplating selling assets such as houses or investments, you may wish to do so before April 2023. If you require assistance with estimated capital gains tax calculations, please contact us.
h) Are you a limited company shareholder/director or do you have an investment portfolio of stocks & shares? The tax-free dividend allowance will be reduced from £2,000 to £1,000 in April 2023 and halved again to £500 from April 2024. This is likely to lead to more individuals being captured by tax reporting requirements.
Happy New Year to you all / Blwyddyn Newydd Dda i chi gyd!
