This table highlights the key allowances, and any changes to be made after April 5th.
Please also bear in mind that we are expecting a Spring Budget on 26th March 2025, during which further changes could be announced. It is important that we remain vigilant during 2025.
Action To Take Immediately
The good news is you still have time to make the most of the above allowances, although don’t leave these until the last minute as all platforms have tight deadlines and cut off points.
Although there are currently no planned changes to the ISA or pension annual allowances (the two most popular), we already saw in the Autumn Budget how quickly things can change, so it is important to utilise these allowances before any further possible changes are introduced.
With this in mind, even if you have already made the most of these allowances for this tax year, it will be sensible to repeat the same steps at the beginning of the 2025/26 tax year in April.
On inheritance tax, there are a myriad of allowances of which you can take advantage. We have listed these separately here, and we will be happy to guide you, as there are various possibilities.
For example, even if you don’t make personal pension contributions, you can gift to children or grandchildren by way of a contribution into their own Junior SIPP. This is hugely tax effective, as well as a great help to the next generation of your family.
You could use your £3,000 tax-free gifting allowance to pay into a Junior SIPP, which has an annual allowance of £3,600. The great advantage of utilising a Junior SIPP is that you only need to pay in £2,880 each year, and the government automatically adds the remaining £720 as basic rate tax relief to take you up to that £3,600 annual Junior SIPP allowance, so it works in the same way as an adult SIPP.
You can do similar with a Junior ISA, for children and grandchildren up to 18 years of age. The annual allowance for this product is £9,000.
Bed & ISA
Capital gains tax is going to become an issue for many more people in the next year or two. The CGT allowance has halved since last year, and action now is important to avoid paying tax unnecessarily.
For example, we can perform what is known as a “Bed & ISA”. A Bed & ISA is a neat way of making use of both your CGT and ISA allowances, by selling investments held outside of your ISA, and immediately purchasing them within your ISA wrapper.
In this way we not only utilise your CGT allowance (up to £3,000) but also your ISA allowance up to £20,000, without it costing you a penny.
Action now?
Missing these allowances could mean that you pay unnecessary tax and by taking action now ensures you maximise your savings allowance, so don’t miss out!
To make a contribution to your ISA or Self Invested Personal Pension (SIPP), or to take any of the other action outlined above, please email to discuss.
Or simply ring on the usual number, 020 8467 1666.
