Sarah Coles, head of personal finance at AJ Bell, says it’s important to filter out the Budget noise but there are ways to make some efficient tax savings before the big day
There are lots of sensible ways to save tax that people can use before the Budget on 28 October. A higher rate taxpayer could save up to £8,500 by combining tax savings from six scenarios such as paying a lump sum into a pension to generate valuable pension tax relief, maximising the annual ISA allowance before it is cut next April, and making use of capital gains allowances.
Waiting for the Budget to drop can be a nerve-wracking experience, as people worry it might land them with a bigger tax bill in the years to come. But rather than just bracing for impact, it’s worth using this opportunity to take some positive steps to save tax, regardless of whatever the Budget holds in store.
Under current rules there are six steps that could leave a higher rate taxpayer as much as £8,500 better off over the course of a year. Depending on what has already been used in the current tax year, they are all worth investigating to see what you could save.
