IMPORTANT REMINDER! Maximise Your Tax-Efficient Allowances Before 6th April
As the end of the tax year approaches, it’s essential to review your financial position and ensure you’ve made full use of your annual allowances before they reset on 6th April. Missing out on these allowances means losing valuable tax-saving opportunities that can significantly impact your financial future.
Key Allowances to Utilise:
1. ISA Allowance – £20,000
Each individual can contribute up to £20,000 into an ISA (Cash ISA, Stocks & Shares ISA, or a combination). The major benefit? Any growth or withdrawals are completely tax-free.
If you don’t use your ISA allowance before the deadline, it does not carry forward, meaning you lose the opportunity for tax-free savings and investments for that year.
2. Pension Annual Allowance – Up to £60,000
The pension annual allowance allows contributions of up to £60,000 (or 100% of your earnings if lower), with the added benefit of tax relief.
For high earners, it’s also worth considering whether you can carry forward any unused allowances from the previous three tax years, potentially increasing the amount you can contribute tax-efficiently.
Why This Matters
Making full use of these allowances can help you: ✔ Reduce your tax liability ✔ Grow your wealth in a tax-efficient way ✔ Make the most of compound growth over time ✔ Strengthen your long-term financial security
Act Now Before the Deadline
The 5th April deadline is fast approaching, and once it passes, any unused allowances are lost. If you’re unsure how to maximise these opportunities, we’re here to help.
If you’d like to discuss your options before the end of the tax year, get in touch with us today.
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