The end of the tax year is fast approaching so don’t miss out on some simple ways to make your money go further.

Here is our Managing Director, Matthew Pescott Frost’s client checklist for end of year financial housekeeping..

Make the most of your £20,000 ISA allowance

Each year, you can save up to £20,000 in an ISA so this is one of the most important considerations at the end of the tax year(if you’d like to read in more detail, visit our accompanying blog here).

If you fail to use your full allowance by 5th April 2024, there’s no opportunity to backdate it – meaning that it’ll be lost.

By using your full allowance (if you are able to), it’ll enable you to shelter this investment from any future liability to income or Capital Gains Tax (CGT).


Review pension contribution limits

There may be opportunities to increase the amount of your income that you transfer to a qualifying pension scheme, before the end of the 2023/24 tax year.

It’s always important to review this, particularly because the cap on the lifetime allowance has been lifted – removing the danger of breaching this limit and incurring unwanted tax charges later on in life.

There has been little change to the rate and banding of Inheritance Tax (IHT) thresholds, making the movement of capital into pension schemes increasingly important. Pensions are a trust, therefore they are not subject to IHT upon death. Due to this, they are the best way to reduce your taxable net worth, without losing control of your assets.

Don’t forget your children’s ISA allowances

As well as your own ISA allowances, it’s also important to consider any ISA allowances that you may have for your children.

Junior ISA limits for under 18’s are currently at £9,000 per child. For those over the age of 18, you can also make use of the £4,000 annual Lifetime ISA (LISA) limit, as the government will increase this by an additional 25%. They will add to your savings, as long as the full value is used to help them purchase their first home (up to the value of £500,000).

Inheritance tax allowances

Where relevant, it may also be worth considering your available inheritance tax allowances. You are allowed to make gifts in the form of potentially exempt transfers, up to the value of £325,000 (or £650,000 as a joint gift for a couple).

Providing that you survive seven years after gifting, it will not form part of your estate and will therefore be free of any inheritance tax penalties.

You also have the option to make smaller gifts each tax year; your annual exemption means that you can give away a total of £3,000 worth of gifts each tax year, without them being added to the value of your estate.

Consider any potential capital gains

This year, it is particularly important to also consider any potential capital gains that you may have, in connection with any investments (such as unit trusts) held outside of an ISA (which is exempt from capital gains tax).

This year, the CGT nil rate band is capped at £6,000, which is less than 50% of the level from the 2022/23 tax year. In the 2024/25 tax year, this will unfortunately halve again to just £3,000, which is why it may be wise to identify any gains that you may wish to act upon before this allowance halves as of midnight on 5th April 2024.

Do any of these apply to you? If so, we can help!

At Matthew Douglas, our team of experienced financial advisers are on hand to help you make the most out of your money.

Get in touch with our team today – we’re happy to provide advice and guidance in any way we can to enable you to make the most of your allowances.