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    Business News

    Tax allowances 2024/25

    28/05/2024

    We are well into the swing of the new tax year so it is a timely moment to recap on tax allowances for 2024/2025. There are some changes and some areas that are entirely resistant to change, although with a General Election imminent you may need to watch this space.

    Personal Allowance

    You are able to earn up to £12,570 per annum before you are expected to start paying tax.

     

    ISA Allowance

    There is little change in that the allowance remains at £20,000 across all ISAs, including a £4,000 allowance for Lifetime ISAs. However, you can now open more than one ISA of the same type in a tax year.

     

    Pension Annual Allowance

    This allowance is no change as it remains at £60,000 but it is worth noting that it can be as little as £10,000 for high earners or if you have accessed a pension.

     

    Junior ISA Allowance

    At the other end of the age spectrum, the amount that you can invest is up to £9,000 in a child’s future. 

     

    Personal Savings Allowance

    Any money in your personal savings will accrue interest, but the most you can earn on your savings before you must pay tax on it is £1,000 for basic rate taxpayers, and £500 for higher rate taxpayers.

     

    Dividend Allowance

    Do note that this allowance has been reduced to £500 this tax year. Any income received from dividends above the allowance is subject to tax at your marginal rate. 

     

    And last but certainly not least:

    Capital Gains Tax Allowance

    Is £3,000 having dropped again from £6,000. So to put it as simply – investors selling assets will face a higher tax bill.

     

    As always do get in touch if you would like to discuss anything.