Happy New Tax Year (4/04/19 )
April Fools Day had its moments – but 650 grown men and women arguing on the banks of the Thames was the cause for little wit beyond irony. Five days later, as we move into the new tax year, a few small but positive changes may bring a bit more cheer. From the 6th of April income tax rates in England & Wales will remain the same, but the income tax bands will move in taxpayers’ favour. The personal allowance increases by almost 5.5%, and the basic rate band widens by almost 9%, which combined should save the average Britain around £130 in tax each year. For investors we’ll see a very minor increase in the capital gains tax allowance, but a much greater one in the nil rate band applied to primary residences for inheritance tax. This latter move will generate a saving of between £10,000 to £20,000 for the average deceased’s estate, and it will rise again next tax year. Large estates will suffer higher probate fees once the enacting legislation is passed, but sensible planning will neutralise this. There are a few other minor increases, hardly worthy of note, but in general as we roll into the new tax year most of us will be a tiny bit better off.