If you have yet to make full use of your end of tax year allowances for 2023/24, there is still time to do so – but the deadline is looming.
For current clients, your adviser can make any contributions you require in line with your current investments, however, we would recommend that if you have not already heard from your adviser and intend to make a contribution prior to tax year end, to notify us of your intention immediately. Please be aware that we anticipate providers closing deadlines well in advance of the 5th April 2024 deadline to meet their processing timescales.
Unsure of areas that you may be able to utilise? Our advisers have put together some key areas to consider before the 2024/25 tax year begins on 6th April 2024.
ISA Top Ups
The amount you can save in an ISA in the 2023/24 tax year is £20,000, including Cash ISAs, Stocks and Shares ISAs, Lifetime ISAs and Innovative Finance ISAs, and the Junior ISA annual allowance is £9,000 (Junior Cash ISA, Stocks and Shares Junior ISA). There is no carry forward of ISA allowances, so if you do not use it, you lose it!
This is an incredibly important tool to save and grow your wealth in a tax-efficient manner, also providing a suitable interim solution until your next review.
Read more in our ISA Guide
Remember Your Pension
Pensions can be excellent vehicles for saving towards retirement and also have an annual allowance which is currently set at £60,000 for 2023/24 (although further rules apply for higher earners).
If you have additional funds at the end of this tax year, you may wish to consider your pension as a tax-efficient saving option. Our advisers are here to help should you require any assistance.
Gift Allowances
Each UK resident can gift up to £3,000 tax-free each tax year, which immediately reduces the size of their estate for Inheritance Tax (IHT) purposes. There are also further gift exemptions available for wedding gifts, gifts out of income and small gifts.
In contrast to ISA allowances, it is possible to carry forward your unused gift allowance from the previous tax years. For example, if you made no gifts in 2022/23, you can gift up to £6,000 in 2023/24. Any gifts made which do not fall within one of these allowances are not necessarily subject to any immediate tax but could become a Potentially Exempt Transfer. These are gifts that fall outside of IHT if you live for seven years or more after gifting.
Read more in The Rules of Gifting Guide
Capital Gains Tax Allowance Decrease
The Capital Gains Tax allowance was reduced from £12,300 to £6,000 for 2023/24 and is set to fall even further to £3,000 in the following tax year (2024/25). Should you achieve any capital gains above this amount, those gains will be liable to taxation of either 10% for nil and basic rate taxpayers, or 20% on anything above the basic rate (on investments, rates for residential property are higher).
If you are unsure of your CGT position and would like to take advantage of the allowance at this year’s higher rate, please do not hesitate to contact your adviser.
Read more in our latest case study on ISAs and CGT allowances
If you would like to speak with an Independent Financial Adviser ahead of the 2023/24 end of tax year to explore opportunities still available before the 5th April deadline please do not hesitate to get in touch on 01463 242242.
Author: MacDonald Partnership
Published: 12th Jan 2024
In January, many start the new year off by making resolutions and trying to stick to them, at least for the first calendar month of the year. Markets have echoed this new year sentiment, providing positive returns, with Global equities returning 4.2% and the Global...
This week has been an emotional one as, after 31 years of service, we say goodbye to a valued member of the Macdonald Partnership team – Anne Robertson. After assisting clients with their own financial plans and retirement goals over the years, Anne is leaving us to...
Starting from 6th April 2026, Agricultural Property Relief and Business Property Relief are expected to be capped at a combined value of £1 million. Any value exceeding this threshold may be subject to a 20% inheritance tax. Whilst individuals can also benefit from...
Stock markets in December felt as if they were readjusting for the year ahead rather than celebrating the previous 11 months. Whilst, sadly, we did not witness the annual ‘Santa Rally’ we usually experience in the month of Christmas, 2024 as a whole was a strong year...
We would like to wish you and your family a very Merry Christmas and a happy and healthy New Year. Thank you for being part of the MacDonald Partnership family; we are excited to continue supporting you throughout 2024 and beyond. This year our offices will be closed...
Your circumstances when you were first enrolled into a workplace pension scheme, compared to what your life may look like when you actually reach retirement age, are likely to be extremely different. Your income, attitude to investment risk, living costs, and your...
October unfolded against a backdrop of significant political anxiety and anticipation as investors awaited Labour’s Autumn Budget announcement on the 31st, as well as the impending results of the US presidential election. This charged atmosphere was mirrored in market...
In this update, MacDonald Partnership and Integrity365 CEO, Matt Goy, discusses some of the key points within the 2024 Autumn Budget statement for clients to pay particular attention to which could impact financial planning arrangements. Yesterday afternoon,...
An excellent job opportunity has arisen within MacDonald Partnership for a talented Paraplanner to join the team in our Inverness office. The role: We are currently looking to expand our team of office-based paraplanners to support our Independent Financial Advisers....
In this market update, Integrity365 Independent Financial Adviser, Douglas Sims, looks back on key activity over the last month. September was a relatively quiet month for stock markets in comparison to the previous few months and even years. Although valuations...
Copyrights © 2025 Macdonald Partnership