This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, it is subject to change and we are not responsible for any errors or omissions.
One of the best ways to put more hard-earned money back into your pocket (via tax-efficient planning) is to be well-prepared for key dates in the financial year. Below, our financial advisers offer a summary of the main milestones for British expats to watch in 2024. We also include some thoughts on how these dates could affect your financial plan.
If you want to discuss your financial plan with a member of our team in Murcia, please get in touch to arrange a no-obligation financial consultation, at our expense:
+34 966 460 407
info@scottsdale.eu
The Spring Statement
Chancellor Jeremy Hunt has announced that he will release the Spring Statement on 6 March 2024. This is one of two statements the government traditionally releases in the calendar year (the other is the Autumn Statement).
The Spring Statement can sometimes contain insignificant announcements. Yet, on many occasions, it has acted as a type of “mini-budget”. In 2020, for instance, it was “upgraded” to a full budget after the previous Autumn Budget was cancelled. So, it is worth watching.
What could the Chancellor announce in March? Of course, only he has access to his own mind. Yet analysts are widely predicting that he will try and cut taxes. This is due to hints dropped to the press, as well as an initial cut to National Insurance (NI) in late 2023.
It is likely that we will not know more about this until the Office for Budget Responsibility (OBR) releases forecasts for the UK economy. Moreover, the Chancellor will want to see whether inflation is still coming down (with an accompanying fall in interest rates) before promising tax cuts. Any cuts which are announced may not take effect immediately.
Income tax could be on the firing line for cuts. Unfreezing income tax allowances (e.g. the £12,570 Personal Allowance) could be an option. However, a cut to the Basic Rate – perhaps even the Higher Rate – may be a possibility to try and sweeten voters.
The end of the financial year
The UK financial year (or tax year) is different to most other countries by holding its beginning and ending in April. Most other countries (e.g. Spain) follow the calendar year. Writing this article in February, clients, therefore, still have time to maximise their UK allowance before the deadline.
Not all British expats are entitled to the full range of UK allowances. For instance, a British person who is resident in Spain for tax purposes, earning a salary from a Spanish company, will be subject to Spanish income tax laws and rates.
However, many expats are still technically UK residents. Check with your financial adviser regarding your tax status and whether you can optimise your financial plan any further before the new tax year (2024-25) arrives on 6 April 2024.
A general election?
Prime Minister Rishi Sunak has publicly stated that his “working assumption” is that a UK general election will be held in the summer of 2024. By law, he must call one before 28 January 2025. The last 10 out of 11 general elections have been held in May or early summer, with 6 coinciding with local elections (to keep administrative costs down).
British expats in Spain should check whether they are eligible to vote in a potential 2024 UK general election and make appropriate arrangements (e.g. setting up a proxy for your ballet). You might need to register as an Overseas Voter.
An election could have big repercussions for your financial plan. UK tax policy might change with a new administration. The economy is currently regarded as the most important issue facing the UK by British voters. It would be foolish to make predictions about which party will win. Yet it will be vital for clients to keep in touch with their financial advisers as manifestos are eventually released. The tax pledges contained inside could have important implications for arranging your financial affairs in a prudent manner.
Later dates
An Autumn Statement could arrive in November 2024 (by which point, a new UK government could be in power). Expats who own a UK company should note that 31 May is the latest date for providing employees with their P60. 6 July is the deadline for submitting form P11D to HMRC, reporting employee benefits and expenses.
5 October is traditionally the deadline to register for UK Self-Assessment tax returns (reporting for the 2023-2024 tax year). Capital gains must be reported by 31 December. A Self-Assessment must be submitted to HMRC by 31 January 2025 at the latest.
Invitation
If you are interested in discussing your own financial plan or inheritance tax strategy with us, please get in touch to arrange a no-commitment financial consultation at our expense:
+34 966 460 407
info@scottsdale.eu