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Maximise Your Tax Allowances Before 5th April 2025!

Writer's picture: Darren PestellDarren Pestell

The end of the tax year is approaching on 5th April 2025, which means it's a great time to review your annual allowances and make the most of them. With changes to tax allowances this year and more expected in the future, planning ahead is crucial.


Maximise Your ISA Allowance: Individual Savings Accounts (ISAs) are a tax-efficient way to save and invest. For the 2024/25 tax year, you can contribute up to £20,000. Gains within an ISA are shielded from Capital Gains Tax (CGT), and you pay no tax on interest or dividends earned. Couples can contribute up to £40,000 combined, enhancing their tax-efficient savings.


Boost Your Pension Contributions: Contributing to your pension can provide significant tax relief. The maximum tax-relievable contribution for most individuals is £60,000 or 100% of your earnings, whichever is lower. High earners should be aware of the tapered annual allowance, which reduces your limit if your income exceeds £260,000. Even without an income, you can contribute up to £2,880, with tax relief boosting this to £3,600.


Plan for Financial Gifting: You can gift up to £3,000 each tax year without it being subject to Inheritance Tax (IHT). If you didn't use last year's allowance, you can gift up to £6,000. Additionally, you can give multiple gifts of up to £250 each to different individuals.


Utilise Your CGT Allowance: The annual CGT exemption allows you to make tax-free gains of up to £3,000. This allowance doesn't roll over, so use it before the deadline. Spouses and civil partners can transfer assets to utilise their exemptions, effectively doubling their tax-free gains.


Review Your Personal Allowance: Your Personal Allowance lets you earn up to £12,570 tax-free annually. Couples can optimise their tax liability by transferring assets to the lower rate taxpayer. The Marriage Allowance allows up to £1,260 of unused allowance to be transferred to the higher earner, saving up to £252 in tax.


Seek Independent Professional Advice: Navigating tax regulations can be complex. Professional advice can help you make strategic decisions tailored to your circumstances, ensuring you maximise your financial opportunities.


Planning ahead and making the most of your allowances can significantly enhance your financial situation.


Based in the New Forest, Woodlands Financial Planning provides an Independent, personalised, whole of market financial advisory consultancy service to help you achieve your financial goals.



Our services relate to certain investments whose prices are dependent on fluctuations in the financial markets beyond our control. Investments and the income from them may go down as well as up and you may get back less than the amount invested. Past performance cannot be used as a reliable prediction of future performance.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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