How investors can beat the Spring Statement

Ahead of the Spring Statement this month, Will Stevens, Head of Wealth Planning at Killik & Co shares his top tip for how savvy investors can protect their gains, comments: “After the Chancellor’s Autumn Statement rewrote the rulebook for several financial planning tenets, industry consensus is for a far more sanguine Spring Statement. Most people will still be considering what the impact of the changes around inheritance tax and pensions mean for their long-term wealth planning, not making big predictive swings ahead of March 26th. However, if there’s one action to take in the coming days, it’s to review what – if any – gains you have made on your investments over the last tax year. The current environment is one of declining CGT allowances and increasing CGT tax rates, and Reeves could well turn her sights to further rate increases in her efforts to raise tax revenue. It is worth considering whether to crystalise those gains now, rather than leaving them to simply accrue for future years.

“For those making that decision, ensure you’re keeping accurate records for next year’s tax return. It is possible to match up specific gains and losses. While many investors may not usually bother, given the rate changed midway through the year, now is the time to start. Not all gains will be created equal; the consequence of a mis-match could offset some of the value of the gains themselves.”