Using up any allowances you are entitled to is the first step to reducing the amount of tax you are liable to pay. With the tax year-end approaching now is the time to act – don’t risk losing out.


You can save up to £20,000 tax-free in an ISA this tax year. If you’re saving for a child, the tax-free allowance for 2018-19 is £4,260 (increasing to £4,368 in the 2019-20 tax year).


Most people will be able to pay up to £40,000 into their pension this tax year. Pension contributions within that Annual Allowance normally receive Income Tax relief; this means that it only costs basic rate tax payers £80 to save £100 (20% tax relief) while higher rate tax payers only need to pay in £60 to save £100 (40% tax relief). The Lifetime Allowance was increased by £30,000 for the 2018-19 tax year and now stands at £1,030,000 (rising to £1,055,000 for 2019-20).


Don’t forget that for Inheritance Tax purposes there’s a tax-exempt allowance of £3,000 per donor per tax year for gifts.

Capital Gains

For individuals, the annual Capital Gains Tax (CGT) allowance is £11,700; taking regular gains can make sense as a part of a tax reduction strategy. The CGT allowance increases to £12,000 for 2019-20

The value of pensions and investments can fall as well as rise, you may get back less than you invested.

 Tax treatment varies according to individual circumstance and is subject to change.

 The FCA do not regulate tax planning.

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