With the new tax year having began earlier this month, here’s an overview of tax allowances for the 2024/25 tax year.
- ISA Allowance is £20,000 across all ISAs, with the Lifetime ISA allowance being £4,000.
- Annual Pension Allowance is £60,000.
- Junior ISA Allowance allows you to save up to £9,000 for a child.
- Personal Allowance is £12,570 meaning that you will be taxed on earnings above this allowance.
- Dividend Allowance is now £500 which means that any dividends above the allowance will be taxed at the marginal rate.
- Capital Gains Tax Allowance is £3,000 so any profit or gain made that is above this allowance will be taxed.
- Personal Savings Allowance is £1,000 for basic rate taxpayers, and £500 for higher rate taxpayers. Any savings above these amounts will be subject to tax.