Don’t Miss Out! Utilise Your ISA and Pension Allowances Before the End of the Tax Year

The tax year is coming to an end on April 5th, 2024, and with it comes the opportunity to make the most of your ISA and pension allowances. These allowances offer valuable tax benefits that can help you grow your savings and retirement pot more effectively.

Here’s a reminder of the key benefits of ISAs and pensions:

  • ISAs:
    • £20,000 allowance
    • Tax-free interest or capital gains
    • Flexible withdrawals (for flexible ISAs)
    • Various options to suit your needs (cash, stocks and shares, innovative finance)
  • Pensions:
    • Standard annual allowance is £60,000 subject to earnings and contributions. Tax relief can be very significant on this and in some cases can equal 60%!
    • Company/personal contributions can be up to £180,000 (using carry forward and subject to allowances)
    • Tax relief on contributions at your highest marginal rate up to your salary!! (subject to limits and tapering)
    • Ability to use carry forward and utilise previous 3 years unused allowances
    • Tax-free growth within the pension
    • Income tax-free lump sum on retirement (up to 25% of your pension pot)

An example of using personal savings to receive tax relief on personal pension contributions at your highest rate

For a higher rate tax payer with sufficient relevant earnings it could look like this

  • Monies in savings £48,000
  • Client Pays £48,000 into personal pension
  • Receives 20% basic rate tax relief (£12,000)
  • Actual contribution made is actually £60,000
  • When tax year has finished client will submit tax return/relevant form to reclaim an additional 20% tax based on the contribution made due to them being a higher rate/additional rate tax payer and as such will reclaim the full 40%/45% income tax on the contribution made!

If you need more help or advice regarding your own allowances and for more information please contact us at

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