You can take advantage of  various allowances and exemptions that you’re entitled to. Taxation information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.

The allowances include:

Annual ISA allowances:

• You can invest up to £20,000 into an Individual Savings Plan (ISA) where the growth is free of tax.
• The allowance applies to stocks and shares and cash ISA’s, or a mixture of the two.
• You can invest up to £9,000 into Junior ISA’s for your children.
• Paying up to £4,000 to a Lifetime ISA qualifies for the government bonus of 25% and can be used as a deposit for a first time property purchase. 

Capital gains tax:

• The annual allowance is currently £6,000 reducing to £3,000 in the 2024/25 tax year.
• If the value of your non tax exempt investments or shares include substantial gains, you might want to consider selling to realise gains within your allowance.

Personal Contributions to Pension:

• The annual allowance is the higher of £3,600 or 100% of earnings up to a maximum £60,000.
• You can carry forward the previous 3 years unused allowance subject to your income.
• You receive up to 45% tax relief on the contributions.
• Care has to be taken regarding the Tapering of the Annual Allowance and Lifetime Allowance.

Business contributions to Pension:

• Contributions paid by an employer are not restricted by salary.
• Unused contributions can be carried forward from previous years.
• Contributions are classed as a business expense thus reducing corporation tax.

Enterprise Investment Schemes and Venture Capital Trusts:

• Contributions qualify for 30% income tax relief.

Inheritance Tax:

• Each tax year you can make gifts to reduce the value of your estate.

Your circumstances and needs are unique to you, please speak to us in good time to ensure you don’t miss any opportunities.