Make the most of your tax allowances – and pay less tax
- On December 13, 2023
- By GrowthInvest Marketing
The amount of money you can claim tax relief on is dropping again in 2024/25. Time for a heads-up with your financial adviser, before tax year-end, to make sure you’re making the most of your allowances.
ou’re probably used to getting a nudge from your financial adviser or accountant around February or March, reminding you to take advantage of your annual tax reliefs and allowances. But, with many families still having to be careful with their budgets, there’s often not much, if any, left over to put into your savings or investments.
So, the last thing you want to do is pay any more tax than you have to on anything you save or earn.
There are changes to Capital Gains Tax and Dividend Tax allowances, that you need to know about. Plus the other tax allowances that you’re entitled to. Use every allowance you can – it really can make a difference.
Here’s what you need to know before the end of this tax year (5 April 2024) and how we can help.
What is the Capital Gains Tax allowance?
The Capital Gains Tax (CGT) allowance for the current tax year (2023/24) is now £6,000 – half what it was a year ago. So, if you’re planning to sell investments, or property, other than your main resident, you can keep £6,000 before you pay any CGT.
The watch-out is that the CGT allowance is halving again in the 2024/25 tax year to £3,000. So, it might be a wise move to sell an asset before this tax year-end, if it suits you.
The current rates for CGT are 10% for basic-rate taxpayers and 20% if you pay the higher or additional rate (18% and 28% if you sell any property that isn’t your main residence).
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