Straightforward Guide for the End of the Tax Year 2023/24 and Looking Ahead to 2024/25

Straightforward Guide for the End of the Tax Year 2023/24 and Looking Ahead to 2024/25

Straightforward Guide for the End of the Tax Year 2023/24 and Looking Ahead to 2024/25

As the end of the 2023/24 tax year approaches, here’s what you need to know to get your finances in order, plus a heads-up on some key tax changes coming in the 2024/25 tax year.

What to Do Before the End of This Tax Year:

  • Consider using Your ISA Allowance:

You can put up to £20,000 into an ISA this tax year without paying tax on interest or realised gains. If you haven’t used this allowance, now’s the time.

  • Check Your Pension Contributions:

There’s no cap on how much you can save into your pension, but tax relief is limited. For the 2023/24 tax year, tax relief is available on pension contributions up to £60,000 or 100% of your net relevant earnings, whichever is lower, with a minimum relief on contributions up to £3,600. If you haven’t yet reached this limit, now is a good opportunity to increase your contributions. Doing so not only maximises your savings for retirement but also takes full advantage of the tax benefits available. Remember though, money is locked away until age 55 currently.

  • Look at Your Capital Gains Tax (CGT) Allowance:

The rules have changed, and currently, you can make gains of up to £6,000 without needing to pay any tax – this is a reduction from £12,300 in the 2022-23 tax year. It’s important to act now because from 6th April 2024, the CGT allowance will decrease further to just £3,000.

  • Utilise Inheritance Tax-Free Gift Allowances:

Each tax year offers an opportunity to give away money without incurring Inheritance Tax. The amount you can give tax-free depends on the allowances you utilise. You’re allowed to give away up to £3,000 worth of gifts each tax year without these gifts being added to the value of your estate. This is referred to as your ‘annual exemption’. The £3,000 can be given to a single person or divided among multiple recipients. If you don’t use the full £3,000 exemption in one tax year, you’re able to carry forward any unused portion to the next year, but this can only be done for one year. Making use of this exemption can be a strategic way to reduce the future Inheritance Tax liability of your estate while benefiting your loved ones now.

Heads up – Changes Coming in 2024/25:

  • NICs are Going Down: Both employees and the self-employed will pay 2p less in National Insurance per pound from April 6, 2024.
  • CGT Rate on Property is Changing: If you sell property, the CGT rate will go from 28% to 24% starting April 6, 2024.
  • Child Benefit Threshold is Increasing: The amount you can earn and still get full child benefit goes up to £60,000. By April 2026, whether you get this benefit will depend on your household income, not just one person’s income.
  • Non-Dom Regime is Ending: The current tax rules for non-domiciled residents in the UK will stop on April 6, 2025, and new ones will start.
  • No More Tax Breaks for Furnished Holiday Lettings: From April 6, 2025, you won’t get special tax reliefs for these properties.

Your Checklist for End of the Tax Year

  • Your ISA allowance: Don’t lose the chance to protect your savings from taxes
  • Review pension contributions: Consider topping up to maximise tax relief and prepare for retirement.
  • Utilise your CGT allowance: With reductions on the approach, now’s the time to act.
  • Gift wisely: Use your annual exemption for gifts to reduce future IHT liabilities.
  • Prepare for NIC changes: Factor in the upcoming reductions in your financial planning.


This information has been prepared using all reasonable care. It is not guaranteed as to its accuracy, and it is published solely for information purposes. Our opinions are subject to change without notice and we are not under any obligation to update or keep this information current. It is not to be construed as a solicitation or offer to buy or sell securities and does not in any way constitute investment advice. The value of investments can fall as well as rise and you may not get back the amount you have invested.

This does not in an way constitute investment or tax advise Any information concerning the tax treatment of an investment is based on our understanding of current HMRC rules which may be subject to future change.  Tax advice is not regulated by the Financial Conduct Authority. 

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