End of Tax Year Financial Planning 2023/24

Have you made full use of your allowances in the 2023/24 tax year? If you have yet to do so, there is still time – but the deadline is looming.

Whilst the end of tax year date is 5th April 2024, please keep in mind that many providers may set earlier deadlines to accommodate increased demand and processing times at this time of year. For current clients, your adviser can make any contributions you require in line with your current investments, however, we would recommend that if you have not already heard from your adviser and intend to make a contribution prior to tax year end, to notify us of your intention immediately.

Unsure of areas that you may be able to utilise? Our Independent Financial Advisers have put together some key areas to consider before the 2024/25 tax year begins on 6th April 2024.

The amount you can save in an ISA in the 2023/24 tax year is £20,000, including Cash ISAs, Stocks and Shares ISAs, Lifetime ISAs and Innovative Finance ISAs, and the Junior ISA annual allowance is £9,000 (Junior Cash ISA, Stocks and Shares Junior ISA). There is no carry forward of ISA allowances, so if you do not use it, you lose it!

This is an incredibly important tool to save and grow your wealth in a tax-efficient manner, also providing a suitable interim solution until your next review.

Read more in our ISA Guide

Pensions can be excellent vehicles for saving towards retirement and also have an annual allowance which is currently set at £60,000 for 2023/24 (although further rules apply for higher earners).

If you have additional funds at the end of this tax year, you may wish to consider your pension as a tax-efficient saving option. Our advisers are here to help should you require any assistance.

Each UK resident can gift up to £3,000 tax-free each tax year, which immediately reduces the size of their estate for Inheritance Tax (IHT) purposes. There are also further gift exemptions available for wedding gifts, gifts out of income and small gifts.

In contrast to ISA allowances, it is possible to carry forward your unused gift allowance from the previous tax years. For example, if you made no gifts in 2022/23, you can gift up to £6,000 in 2023/24. Any gifts made which do not fall within one of these allowances are not necessarily subject to any immediate tax but could become a Potentially Exempt Transfer. These are gifts that fall outside of IHT if you live for seven years or more after gifting.

Read more in The Rules of Gifting Guide

The Capital Gains Tax allowance was reduced from £12,300 to £6,000 for 2023/24 and is set to fall even further to £3,000 in the following tax year (2024/25). Should you achieve any capital gains above this amount, those gains will be liable to taxation of either 10% for nil and basic rate taxpayers, or 20% on anything above the basic rate (on investments, rates for residential property are higher).

If you are unsure of your CGT position and would like to take advantage of the allowance at this year’s higher rate, please do not hesitate to contact your adviser.

Read more in our latest case study on ISAs and CGT allowances

If you would like to speak with an Integrity365 Independent Financial Adviser ahead of the 2023/24 end of tax year to explore opportunities still available before the 5th April deadline please do not hesitate to get in touch on 0117 450 1300.