We are well into the swing of the new tax year so it is a timely moment to recap on tax allowances for 2024/2025. There are some changes and some areas that are entirely resistant to change, although with a General Election imminent you may need to watch this space!

Personal Allowance

You are able to earn up to £12,570 per annum before you are expected to start paying tax.

 

ISA Allowance

There is little change in that the allowance remains at £20,000 across all ISAs, including a £4,000 allowance for Lifetime ISAs. However, you can now open more than one ISA of the same type in a tax year.

 

Pension Annual Allowance

This allowance is no change as it remains at £60,000 but it is worth noting that it can be as little as £10,000 for high earners or if you have accessed a pension.

 

Junior ISA Allowance

At the other end of the age spectrum, the amount that you can invest is up to £9,000 in a child’s future. 

 

Personal Savings Allowance

Any money in your personal savings will accrue interest, but the most you can earn on your savings before you must pay tax on it is £1,000 for basic rate taxpayers, and £500 for higher rate taxpayers.

 

Dividend Allowance

Do note that this allowance has been reduced to £500 this tax year. Any income received from dividends above the allowance is subject to tax at your marginal rate. 

 

And last but certainly not least:

Capital Gains Tax Allowance

Is £3,000 having dropped again from £6,000. So to put it as simply – investors selling assets will face a higher tax bill.

 

As always, do get in touch if you have any questions