Saved some extra money during the previous tax year?
The start of a new tax year is typically a time when people review their finances and plans for the future. What is different about this tax year is that some people have found they have saved extra money by not going out so much or going on holiday over the past few months.
Here are some you ways you could put that money to good use:
You can contribute up to £20,000 into an ISA
- If you want to save for a child, you can pay up to £9,000 into a Junior ISA
You can invest a maximum of £40,000 into a pension.
Please bear in mind that the value of ISAs and pensions can fluctuate and you could end up with less than you originally invested.
Other useful tax allowances to be aware of
- The personal allowance has increased to £12,570 and the basic-rate band is now £37,700
- The Personal Savings Allowance, a tax-free allowance for interest, is £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers
- A £2,000 tax-free allowance for dividend income
The Capital Gains Tax allowance of £12,300
Various financial gift tax allowances, which are extremely useful if you are looking to give money away.
Speak to us
If you want to make the most of your tax allowances this year, speak to Tilney to find out how we can help. You can book an appointment online or call us on 020 7189 2400.
Prevailing tax rates and reliefs depend on your individual circumstances and are subject to change. This article does not constitute personal advice. If you are in doubt as to the suitability of an investment please contact one of our advisers.
Issued by Tilney Financial Planning Limited.
This article was previously published on Tilney prior to the launch of Evelyn Partners.