Helpful Tips to Make the Most of Tax Year End 

As the tax year end approaches on 5^th April, it's an ideal time to review your financial plan and take advantage of your annual allowances and other tax-saving opportunities. Here are some key strategies to keep more money in your pocket during tax season. 

Pension contributions 

The annual pension contribution allowance for 2024/25 remains at £60,000 for most people. Don't forget about carry-forward rules, which allow you to use any unused allowance from the previous three tax years to allow larger contributions. Consider making additional pension contributions before the tax year ends to benefit from tax relief at your marginal rate. For higher-rate taxpayers, this means getting 40% tax relief on contributions, while additional-rate taxpayers can receive 45% relief. 

Savings and investments 

The ISA allowance for 2024/25 stands at £20,000 and this can't be carried forward to future years. Consider maximising your ISA contributions across Cash ISAs or Stocks and Shares ISAs. Remember that any returns from ISAs are tax-free, making them a great way to build long-term savings and investments. 

Capital Gains Tax (CGT) strategy 

The annual CGT exemption is currently £3,000 after being reduced significantly in recent years. Consider selling assets that have made gains to take advantage of your annual exemption. If you're married or in a civil partnership, you might want to transfer assets between spouses to make use of both allowances. 

Income tax efficiency 

Review your income sources and consider whether income can be split more efficiently between you and your partner to make use of personal allowances and basic rate tax bands. This could include transferring income-producing assets or sharing dividend income from family businesses 

Marriage Allowance 

If one partner in a marriage or a civil partnership earns below the personal allowance while the other is a basic rate taxpayer, don't forget to claim the Marriage Allowance. This allows you to transfer 10% of the unused personal allowance to the higher-earning spouse. 

Business and charitable considerations 

Business owners should pay close attention to the timing of capital expenditures to maximise available allowances. Review your company structure and dividend policy to ensure they're as tax-efficient as possible. Charitable donations are another avenue for potential tax benefits, particularly for higher-rate taxpayers. Donations can help reduce your tax liability while supporting causes you care about. 

Key actions before the tax year ends 

• Review and maximise pension contributions 
• Fully utilise your ISA allowance 
• Strategically manage capital gains 
• Verify Marriage Allowance eligibility 
• Assess business-related tax planning options 
• Explore charitable donation opportunities 

While this provides a comprehensive overview, the most suitable approach depends on your unique circumstances, income level, and financial goals. A financial adviser can provide personalised guidance through complex tax regulations and identify opportunities specific to your financial situation. Consider scheduling a consultation to ensure you're making the most of the tax allowances you are entitled to before the tax year concludes. 

Tax planning is not regulated by the Financial Conduct Authority
Tax treatment varies according to individual circumstances and is subject to change.