Take control of your financial future today

The new tax year is a good time to take advantage of your annual allowances to give your savings and investments more opportunities to grow.

22 May 2024


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By using your annual allowances sooner rather than later, your money will benefit from the tax advantages and potential growth earlier. This guide covers key areas including inheritance tax, capital gains tax (CGT), pension planning, retirement planning, gifting to charity and other tax allowances that could be available to you.

For most people, a pension is the most tax-efficient way to save for retirement, and you may be able to contribute up to £60,000 each year. Tax relief on contributions means any personal payments usually receive 20% tax relief immediately.

There’s no tax to pay on any growth so investing early in the tax year can potentially provide greater returns than putting it off until later. It’s also important to consider how CGT affects your other assets because exemptions and thresholds can make a substantial difference. Any gains over the £3,000 annual allowance are liable to a maximum CGT charge of 20% – so you will keep 80% of any rise in the value of your investment.

You will only pay tax if your investments rise and when you crystallise these gains by selling them.


Other things to know this tax year:

 

  • By taking advantage of your annual allowances at the start of the tax year rather than waiting until the end, you’ll get an extra 12 months of interest or potential investment growth (depending on market performance).

     

  • Following the abolition of the lifetime allowance on 6 April 2024, you may now be able to save even more into your pension fund.

     

  • If you’re not able to save and invest all of your annual allowances at the start of the tax year then consider setting up a monthly plan so that you’ll get your money working harder for you sooner rather than later.

     

Your Rathbones contact can help you make the most of your annual allowances. Getting this important job done early in the year means any money you’ve invested will start to benefit from the tax advantages and aid potential growth.


Find out more in our guide:

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The value of investments and income arising from them may fall as well as rise and you might get back less than you originally invested. Tax treatments depend on the individual circumstances of each client and may be subject to change in the future.


If you would like to find out more about how a financial planner can help, please speak to your Rathbones contact or get in touch.


Additional information:

Rathbones and Rathbones Financial Planning (RFP) are trading names of Rathbones Investment Management Limited, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office: Port of Liverpool Building, Pier Head, Liverpool L3 1NW. Registered in England No. 01448919. It should be noted that some services provided by RFP are not regulated by either the Financial Conduct Authority nor the Prudential Regulation Authority.

Trust, tax and company administration services are provided by Rathbones Trust Company Limited (RTC). Legal services are provided by Rathbones Legal Services Limited (RLS), a wholly owned subsidiary of RTC. RLS is authorised and regulated by the Solicitors Regulation Authority. It should be noted that any services provided by RTC are not regulated by either the Financial Conduct Authority or the Prudential Regulation Authority. Registered office: 8 Finsbury Circus, London EC2M 7AZ. Registered in England No. 01688.

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