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How to beat the Budget tax raid on investors and savers

The article from This Is Money discusses strategies for investors and savers to mitigate the impact of the upcoming tax changes announced in the UK Budget. Key points include the reduction of the capital gains tax (CGT) allowance from £12,300 to £6,000, and the dividend allowance dropping from £2,000 to £1,000, with further reductions planned for the following year. To counteract these changes, the article suggests several tactics: utilizing tax-efficient investment vehicles like ISAs, where gains and dividends are tax-free; considering Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EIS) for tax relief; and potentially selling assets before the tax year ends to lock in the current higher CGT allowance. It also advises on the importance of tax planning, such as offsetting gains with losses, and highlights the need for savers to be aware of the personal savings allowance, which remains unchanged but could be more critical with rising interest rates. The article emphasizes proactive financial planning to minimize tax liabilities in light of these new fiscal policies.

Read the Full This is Money Article at [ https://www.thisismoney.co.uk/money/investing/article-14072107/How-beat-Budget-tax-raid-investors-savers.html ]