2023/24 Tax year end – things to consider

Whether managing your corporate or personal tax affairs, March is a really good time to spend a little while preparing for the impending end of the tax year. As ever, the budget statement on 6th March means a number of changes will take effect from April 6th, requiring due consideration in advance. There are also those perennial matters for which prior planning prevents post-Christmas palpitations – Yes, now is a good time to be thinking self-assessment.

Selling your property and investing the proceeds

After marginal decreases in property values in the latter part of 2023, and with mortgage interest rates still at their highest in more than a decade, some are using the chance to jump out of the property market, downsize or sell second properties and invest the cash.

If you’re thinking of selling property or downsizing and investing the proceeds, there are a few things you need to consider.

Will my eBay sales be classed as income for tax purposes?

New legislation that came into force from 1st January 2024, has left many individuals wondering whether they will end up paying tax on incomes generated through a range of online portals such as eBay and AirBnB. News of the reporting changes for digital portals spread like wildfire across social media with some suggesting this was a back door in for HMRC to begin charging tax on sales of unwanted goods and second-hand clothes. But clarity has now been provided to help online sellers and those renting properties via portals such as AirBnB understand what the new legislation is and when it might see them paying additional tax.

Cliff edge tax traps for middle income earners

The freeze on income tax thresholds is creating a series of tax cliff edge situations for middle income earners according to analysts. The Chancellor has made clear that the income tax thresholds will not change for a ‘few years’ meaning thousands of people are finding themselves paying more tax as their pay increases move them into the next bracket or create effective tax rates through loss of other income streams.

IHT Lifetime Gifting ‘Tax Trap’

News that HMRC has pulled in almost £650m due to complex inheritance gifting rules in the past three years, has once again highlighted the need for careful estate planning by families. Whilst the overall tax receipts from Inheritance Tax (IHT) between April 2022 and February 2023 were £6.4 billion, the focus of this latest news is on the proportion collected as a result of gifts made by the deceased in the period leading up to their death.