MoneyMagpie Editor and financial expert Vicky Parry warns of five financial moves everyone must make before the next Budget announcement<\/p>\n
The Autumn Budget<\/a> is going to be late this year, on November 26. But that\u2019s a good thing for many of us, as it provides more time to prepare and make moves now to avoid losing out financially.<\/p>\n While many things expected in the upcoming Budget are based on speculation, there is one clear outcome regardless of rumour: our wallets will feel it. Whether there is more taxation, fewer social security benefits or cuts in the community, the Budget is going to be hard on everyone.<\/p>\n Assess your investments<\/a> and maximise tax-free allowances before changes come in before November 26 to try and mitigate the impact of Budget changes on your bank balance.<\/p>\n Fill your Cash ISA allowance<\/p>\n Individual Savings Accounts (ISAs) are tax efficient saving accounts. You don\u2019t pay tax on any interest or gains from within the account.<\/p>\n Long have there been rumours about the Personal Savings Allowance<\/a> being cut. While Chancellor Rachel Reeves<\/a> has ruled out a cut from the maximum allowance of \u00a320,000, there have been rumours that the amount you can pay into a Cash ISA could be cut.<\/p>\n Some expect the reduction to be as low as a maximum annual allowance of \u00a34,000 for your Cash ISA, with the remaining \u00a316,000 into investment ISAs instead. Again, nothing has been confirmed yet though.<\/p>\n If you want to maximise your Cash ISA savings, make sure you move savings from a regular account into your Cash ISA as soon as possible, to make the most of the full allowance available before it is cut.<\/p>\n Set up a Junior ISA<\/p>\n Children up to the age of 16 can have a Junior ISA<\/a>. The maximum annual allowance is \u00a39,000. If your children don\u2019t have one yet, you may want to consider setting one up as soon as possible.<\/p>\n They take over control of the account when they turn 16, but can\u2019t access funds until they are 18. This makes it an ideal way to save for their future in the most tax-efficient account available. Remember that money you pay into their account is theirs; you cannot claim it back from them later on.<\/p>\n Gift a living inheritance<\/p>\n There are rumours of proposals regarding gifted money and assets. Some of these rumours suggest there will be a lifetime cap on how much a parent or grandparent can gift a child throughout their lives.<\/p>\n Others suggest the Inheritance Tax threshold<\/a> will be lowered, and\/or the rules regarding gifts within seven years of death will mean higher taxes on gifts.<\/p>\n If you\u2019re in good health and want to ensure your child\u2019s future, now is a good time to consider gifting cash or assets you had set aside for their inheritance.<\/p>\n Remember that your home, also called your primary residence, has additional tax relief on it \u2013 so be wary about gifting your house to your children while you still live in it.<\/p>\n Gifting money and assets while you\u2019re alive can come with some extra rules and regulations. If you want to give away large sums or property, speak to a specialist before making any decisions.<\/p>\n Check your rental tenancy agreement<\/p>\n One big rumour for the upcoming Budget is that landlords may soon have to pay National Insurance at a rate of 8% on their rental income.<\/p>\n A second rumour involves radical reforms to property taxes, whether that\u2019s an annual tax on homeowners based on the value of their property, or the shift from Stamp Duty tax to a property sale tax landed on the seller.<\/p>\n If you are nearing a break clause or the end of your current rental agreement, and you are happy with where you live, try to set your next rental agreement in stone before the next Budget announcement.<\/p>\n This will help protect you from immediate rent rises that will be likely if either (or both) the property tax and National Insurance requirements are introduced.<\/p>\n Remember that you cannot be evicted from your property during an Assured Shorthold Tenancy agreement during the original term (such as 12 months), even with a Section 21 issuance. Locking in another year on your agreement now can protect you from unwanted eviction if your landlord wants to sell up because of the changes to property and rental income taxes.<\/p>\n Use your Capital Gains allowance<\/p>\n Everyone has a \u00a33,000 Capital Gains Allowance each year. But, this could be on the chopping block, according to rumours.<\/p>\n