Tax Year End - Pinnacle Wealth

There’s a cost to avoiding things we don’t enjoy

That includes tax year-end planning.

Whether it’s going to the gym or making that dentist appointment, there can be a high price to avoiding the things we don’t enjoy. We know it makes sense in the long run, even if it’s not always fun in the moment.

The same goes for making the most of your allowances before the 5th April 2025 deadline. While it might not be the most exciting task on your to-do list, taking the time to plan properly can save you money and help you achieve your financial goals.

Don’t put it off. Smart tax planning ensures you’re taking full advantage of available reliefs and allowances, and can make a real difference to your bottom line.

Your tax year-end checklist

Ensure you’ve made the most of your available tax reliefs and allowances to create the financial future you want.

Pensions

Consider increasing pension contributions to utilise the annual allowance fully, including carrying forward unused allowances from the previous three years. Spread large pension withdrawals over multiple years to minimise income tax. Read more about reducing your tax bill here.

Income Management

High earners can reduce taxable income by increasing pension contributions or making charitable donations, potentially retaining personal allowances and benefits like Child Benefit. For further information including how to avoid the 60% tax trap, read more here.

ISAs

Maximise the annual ISA allowance of £20,000 per individual (£40,000 for a couple). You can contribute up to £9,000 per child/grandchild into Junior ISAs. Please note thought that only a parent or legal guardian can set up a Junior ISA. Read more about reducing your tax bill here.

Business Owners

Opt for dividend income instead of salary to utilise the £500 tax-free dividend allowance and reduce NICs. For further reading on tax planning strategies, click here

Estate Planning

Gift up to £3,000 annually to reduce the value of your estate for Inheritance Tax purposes. For more advice on inheritance tax planning, read more here.

Capital Gains Tax

Use the reduced CGT exemption (£3,000) before tax year-end. For further guidance, read more here.

It pays to tackle the trickier things in life

Seek expert advice well in advance of the 5th April deadline and tax year-end planning will be one less thing to worry about. Whether it’s opening or topping up an ISA, maximising your Capital Gains Tax allowance or adding to your pension, we’re here to help you make the most of your allowances and exemptions.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.

Tax Year-End Webinar, 6 February 2025
If you missed the Webinar with expert hosts Niki Patel and Claire Trott of St. James’s Place please do contact us for the recording or further information.

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