Tax year end quiz for 2024/25 Survey

1.Have you used your 2024/25 ISA allowance?

Yes. Nice work! Make sure you have the correct split of stocks and shares ISA and cash ISA to meet your objectives. Check out our blog ‘How much cash should I hold?’.

No. If you have spare cash, make sure you use your ISA allowance. Interest, investment income and investment growth are tax free in an ISA and you can contribute up to £20,000 each year. Check out our blog ‘Save tax on your savings interest’.

2.Is your adjusted net income above £100,000?

Yes. You’re paying 60% income tax on earned income between £100,000 to £125,140 and 45% tax on earnings above that. Consider using personal pension contributions to save income tax. (you can’t access pensions until age 55, increasing to age 57 from 2028)

No. You’ve avoided the personal allowance tax trap but could still save income tax by using pension contributions.

3.Do you have investments or shares held outside ISAs?

Yes. You can sell investments making a gain of up to £3,000 this tax year and no tax will be payable. This is called your capital gains exemption. Using your exemption each year can save you capital gains tax in the long term.

No. You cannot benefit this tax year. In future tax years you can consider holding investments outside ISAs to use your dividend income allowance (£500 tax free dividend income in 2025/26) and capital gains exemption (£3,000 in 2025/26)

4.Do you have earnings over £200,000?

Yes. The amount you can contribute to your pension and receive tax relief on could be restricted. Consult a financial planner to understand how this could impact you and avoid any tax penalties. Book a call with us now to check your position.

No. The amount you can contribute to a pension and receive tax relief on is a maximum of your UK relevant earnings, or £60,000 each tax year. You may use unused annual allowance from the previous 3 tax years.

5.Have you made any gift aid donations since 6th April 2024?

Yes. Good – those charities need our support! Did you know that if you’re a higher or additional rate taxpayer you could also be due a tax refund in return for your generosity? You should consider completing a tax return for 2024/25 to receive your tax refund. Speak to us for a recommendation for a good accountant or to understand more.

No. Remember, gift aid donations receive tax relief for the charity (25% of your donation is added by HMRC for the charity - £80 is topped up by £20 to make a £100 total donation). You could also receive personal tax relief if you’re a higher or additional rate taxpayer.

Risk warnings
You cannot access pensions until age 55 (increasing to 57 on 2028).
Investments carry risk. Income and gains from investing can go down and you may get back less than you invested.
The Financial Conduct Authority does not regulate tax planning.

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