For many, this is the point of the year that signifies change, especially when it comes to financial matters. It’s certainly the time of year when my team sees an increase in calls and emails asking for advice regarding tax allowances and closing off the year in the most economical way.

Within the next few weeks, we will witness another tax year close and a new one open. If you have savings, ISA’s or pensions, this can be a busy period and timing can make a huge difference.
ISA’s are generally my first point of call when it comes to evaluating where to put your money, especially at this late stage in the year. Each of you has a £20,000 allowance each tax year, so if you haven’t made the most of it yet, it’s certainly a good place to start. Remember, ISA’s are essentially tax free savings/investment accounts, so any returns you earn fall outside of income tax, and capital gains.

As I’ve mentioned capital gains tax, it’s worth pointing out the allowance for capital gains has halved from £6,000 pa to £3,000 pa for the 24/25 tax year period and beyond, of course ISA’s shield you from these changes anyway, so this is yet another reason to make sure you use your allowance or as much of it as you can.

Pensions are another interesting option too, for those of you under 75, even if you haven’t earned an income, you can still pay £2,880 and benefit from £720 tax relief.
My advice is generally to make a plan for your investments early in the tax year, this way it allows you to make the most of the entire period, rather than trying to cram it in towards the end.

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