It's good to reflect on your personal financial circumstances at this time of year. With the 2024/25 tax year drawing to a close, there's still time to make use of tax allowances. Don't leave it to the last minute to get your finances in order -- that includes being tax-efficient.
You might want to make some pension contributions, use your Capital Gains Tax (CGT) or Dividend Allowance, embark on some Inheritance Tax (IHT) planning or even maximise your investments using tax-efficient vehicles including Individual Savings Accounts (ISA) and Junior Individual Savings Accounts (JISA) and – for the more seasoned investor – Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs).
There’s not long to go until the end of the tax year (5 April 2025), so let’s get organised!
TAX PLANNING AFTER THE AUTUMN BUDGET
Remember, the latest Budget:
Froze IHT thresholds to 2030. From April 2027 pension pots will be considered part of taxable estates.
Announced CGT increases. The basic rate moved to 18% and the higher rate to 24%. The CGT allowance remains at only £3,000 for individuals.
Kept annual ISA subscription limits at £20,000 (£9,000 for Junior ISAs) until 5 April 2030.
Speak to us if you need help with end of year tax planning.
KEY TAKEAWAYS
There's still time to use tax allowances |
The last budget made significant changes to the tax environment |
Speak to an independent financial adviser if you need help |
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice, and certain forms of estate planning.