Things to do list

As we move ever closer to the budget statement on 16/03/2016, the end of the current tax year on 05/04/2016 and the EU referendum in June here are some actions for you to consider.
With the possibility of tax relief on pension contributions being altered higher rate tax payers (40%) and additional rate taxpayers (45%) may want to consider making extra pension fund contributions prior to the budget (subject to the annual contribution allowance rules). I would suggest basic rate taxpayers (20%) just continue with your current contribution levels.
If you are a Director of a limited company paying yourself a basic salary and dividends it may be prudent to consider making special dividend payments prior to 05/04/2106 due to the fact that the taxation on dividend payments are subject to change. The notional 10% tax credit on dividends will be abolished.
A £5,000 tax free dividend allowance will be introduced, & Dividends above this level will be taxed at 7.5% (basic rate), 32.5% (higher rate), and 38.1% (additional rate).
With the possibility of extra markets volatility and an effect on Sterling being created by the EU referendum vote, with the possibility of a Brexit, investors with a short term view may want to re assess their attitude to risk and re align their asset allocation. Investors with a long term view should stay as they are and sit tight. Anyone who can ride out the storm the extra volitility creates a great opportunity for long term capital growth by making regular contributions rather than lump sums at a time when the markets are down and benefitting from the effect of pound cost averaging when the markets pick back up again which historically they always have, a great opportunity to truly buy low and sell high.

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