2024/25 Tax Allowances

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.