End of Tax Year: Your Essential Checklist

With the tax year end – 5th April – under 2 months away, now is a crucial time to review your financial arrangements. We’ve pulled together a list of key changes to be aware of, and important allowances to remember to take advantage of before you lose it at the end of the tax year!

Recent and upcoming changes

Several significant tax changes have already been implemented:

• Modified capital gains tax (CGT) rules for share sales
• Reduced CGT lifetime limit for investor relief from £10 million to £1 million
• Introduction of VAT on private school fees since January 1st

From 6th April 2025, further changes will take effect:

• Electric vehicles will become subject to Vehicle Excise Duty (VED)
• A new residency-based system will replace the current non-UK-domiciled taxation system
• State pension will increase by 4.1%, raising weekly payments from £221.20 to £230.25
• Employer National Insurance Contributions will rise from 13.8% to 15%

Additionally, from April 1st, Stamp Duty Land Tax relief will change:

• Tax-free threshold for home purchases will decrease from £250,000 to £125,000
• Properties valued between £125,001 and £250,000 will incur a 2% charge

Key annual allowances to utilise

The key anual allowances have changed a little in the past year, and include:

• ISA allowance: Total allowance of £20,000 (including up to £4,000 for Lifetime ISA)
• Junior ISA allowance: £9,000
• Pension contributions: £60,000
• Income tax personal allowance: £12,570
• Marriage allowance: £1,260
• Inheritance tax: £3,000 in annual gifts (plus seven-year rule provisions)
• Capital Gains Tax: £3,000
• Dividend allowance: £500

When utilised fully, these allowances can be extremely beneficial in reducing tax liability so it’s important to take advantage of all applicable allowances.

Don’t leave it to the last minute!

As there’s not much time left to use up these key allowances before the tax year end, now is the best time to act. Banks, pension providers and other financial institutions can be slow to move funds, make changes and enact orders so don’t wait until the last minute. Taking action now rather than in early April will help avoid any potential disappointment or negative financial impact.

Get in touch with our team of Wealth Experts if you need guidance on maximising these allowances and navigating the changes.