Financial planning – looking ahead into 2022

Post by Mearns & Company in News

Christmas and New Year were largely reinstated this year and, despite the surge in Omicron variant cases, many restrictions have been lifted. However, cases are still high and affecting many front-line services.

Meanwhile the UK has entered its next phase of leaving the European Union as new customs regulations are now fully in force from 1 January 2022 requiring further adjustments.

Following a full Budget at the end of October, the start of 2022 sees taxpayers in the helpful position of being fully informed about the Chancellor’s plans for the year ahead – barring any last-minute U-turns. The upcoming tax band freezes were announced last year allowing for some strategic year end planning.

This was made easier by the ending of long-running speculation regarding potential reform to inheritance tax and capital gains tax, as the Treasury announced that no structural reform to these taxes will take place. There is no spring Budget this year, so assuming no last minute surprises in the March Spring Statement, you should be in a good position for some strategic tax planning.

Concerns about fuel price rises alongside the highest inflation since the 1970s will cause many to re-evaluate their spending this year. For some this has meant reviewing their retirement planning to either retire early or prolong their working lives into a more phased approach. Proposed changes to the state pension age are under review, but those saving towards retirement who may have spare pandemic savings should look at how to put any windfall to best use in the current climate.

The latest updates to our Key Guides include recent developments in key financial planning areas, including forthcoming tax rises and threshold freezes in 2022/23.

If you have any questions related to our Key Guides, please get in touch.