Your tax allowances for 2024/25

With the new tax year in full swing, make sure you’re aware of the tax allowances for 2024/2025!

Pension annual allowance

The pension allowance remains at £60,000, however, how much you can pay into your pension will depend on your personal circumstances. The £60,000 includes any contributions made by you or your employer and the basic-rate tax relief the state adds.

Capital Gains Tax (CGT) allowance

Your annual exemption is £3,000 if you sell or give away an asset. The standard CGT rate is 18% on residential property and 10% on other assets, and the higher CGT rate is 24% on residential property and 20% on other assets. The rate of CGT will depend on your other taxable income(s).

Personal savings allowances

You can earn up to £1,000 in interest off your savings before you must pay tax if you’re a basic rate taxpayer (earning between £12,571 and £50,270), for higher rate tax payers (earning between £50,271 and £125,140) you can earn up to £500 in interest and if you’re an additional rate taxpayer (earning over £125,140) you don’t get an allowance.

Personal allowance

Earn up to £12,570 before paying tax, if your salary is under £100,000. For those earning between £100,000 and £125,140 your personal allowance is reduced by £1 for every £2 earned between the £100,000 and £125,140. If you’re earning over £125,140 your personal allowance is £0.

ISA allowance

Remains at £20,000 across all ISAs, including a £4,000 allowance for Lifetime ISAs. You are now able to open more than one ISA of the same type in a tax year.

Lifetime ISA allowance

A Lifetime ISA is a flexible, affordable way to save and invest for your first home or later life. You can open one if you’re between 18 and 39 years old. You can choose to save cash or invest in the stock market, and as with other ISAs, your money gain interest free from UK taxation. But the real benefit is a 25% government bonus worth up to £1,000 a year.

Junior ISA allowance   

Invest up to £9,000 in the 2024/25 tax year for your child’s future, using either a cash ISA or stocks and shares ISA.

For personalised advice on how to make the most of the allowances, get in touch today!