The new tax year

Spring is on the way, which is a timely reminder that it'll soon be the new tax year...

The current tax year will be ending soon, on Friday 5th April.

With this date fast approaching, now is a good time to be considering your finances – particularly to make sure you don’t miss out on any tax allowances.

Investing Ethically | New tax year | Snowdrops

For ISAs, savers can invest up to £20,000 each tax year. It’s also possible to pay money into Junior ISAs for children and grandchildren who have their own allowances.

For pensions, your annual allowance is the limit on the total amount you can pay in and still receive tax relief.

Most people have a Capital Gains Tax (CGT) allowance, and you’ll only pay CGT if your overall realised gains for the tax year are above this figure, after deducting any losses and applying any reliefs. This can be a complicated area! CGT allowances decreased for this current year and will decrease again, down to £3,000, for next tax year. As a result, many more individuals and trusts may be liable for CGT. The Dividend Tax Allowance (the amount you can receive in dividends before you start paying tax on them) is also decreasing further for the new tax year, down to £500.

Note that ISAs are exempt from CGT and Dividend Tax, and they’re also exempt from any tax on interest earned.

Please do contact us if you have any questions about using your allowances for this year.  We’ll need to receive any instructions from you as soon as possible, to leave time for transactions to be completed before the tax-year end.

If you’d like to know more about ethical investments and how our Chartered Financial Planners can help you manage your finances, then please get in touch.

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Investing Ethically
15 February 2024

This article is for information purposes only. None of the content should be considered a personal recommendation to invest in any of the companies or funds listed. You should seek personal financial advice before considering investments.

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