Your allowances for the 2024/25 tax year

6 April 2024 marks the beginning of the new tax year. To help get your finances off to a good start, we’ve put together a useful summary of your new allowances

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Kevin Broadbent
Published: 06 Apr 2024 Updated: 06 Apr 2024
Budget Tax Pensions Personal tax

Your annual allowances at a glance

  • You could put a maximum of £60,000 or the total of your UK earnings (whichever is less) into a defined contribution pension and receive tax relief. This is your pension annual allowance. For most people, relevant UK earnings include income received from employment like a salary, bonuses and commission. As an example, if your earnings total £50,000 per annum, this is the total amount you can benefit from tax relief on. Alternatively, if you earn over £60,000, this figure is the maximum on which you will gain relief
  • If you’re investing money on behalf of a child, you could pay into a Junior ISA for them. The Junior ISA allowance for this tax year is £9,000
  • Your ISA allowance for 2024/25 is £20,000. Changes set out by Jeremy Hunt in the Spring Budget 2024 mean you can invest money into more than one ISA of the same type in one tax year. For example, you can now invest into two stocks and shares ISAs in the same tax year, as long as these contributions do not total more than your £20,000 ISA allowance when combined

The start of the new tax year is also a great opportunity to review the investments you already have within your ISAs and pensions to see if they are still suitable for you.

Please remember that as with any other form of investment, the value of ISAs and pensions can fluctuate and you could end up with less than you originally invested. Tax rates and reliefs depend on individual circumstances and could change in the future.

Other key tax year allowances

  • The maximum amount you can earn before you start paying tax is £12,570. This is known as the personal allowance
  • Your dividend allowance has been reduced to £500 this tax year
  • The capital gains tax (CGT) allowance stands at £3,000
  • Basic rate taxpayers have a personal savings allowance of £1,000, and higher rate taxpayers have an allowance of £500

Talk to Evelyn Partners about using your allowances

If you want to know more about the best ways to maximise your allowances this year and the suitability of your existing investments, book a free telephone consultation with one of our experts. You’ll be able to ask any questions and discover more about how we can help you.