The value of investments can fall as well as rise, and you may not get back the full amount you invest. Eligibility criteria, fees and charges apply. Tax reliefs referred to are those applied under current UK legislation, which may change. The availability and value of any tax relief will depend on your individual circumstances. All tax benefits detailed below are accurate at the time of writing for the 2023/24 tax year, and could be subject to change in the new tax year.
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Your end of tax year checklist
As we approach the end of the tax year (5 April 2024), here’s a handy checklist to help you invest and save efficiently, and make the most of your tax allowances before they are lost.
The tax year runs from 6 April to 5 April. In the weeks running up to its end date, it’s important to double-check if you have any tax allowances left over before they are lost. Because once they’re gone, they’re gone.
Our to-do list takes you through exactly what to check before this tax year ends.
1. Invest with a Stocks and Shares ISA
ISA allowance: £20,000
A Stocks and Shares ISA is an easy way to invest for the future. You could invest up to £20,000 each tax year without paying UK Income Tax or Capital Gains Tax on any returns. You could do this in one go or add monthly amounts – whatever suits you.
If you’ve already started an ISA this tax year, you might want to see how much of your ISA allowance you have left and consider putting some extra cash to work. At the moment, you can only have one Stocks and Shares ISA in each tax year, so it’s worth making the most of it.
Alternatively, if you haven’t used your ISA allowance at all, you could get started today with NatWest Invest. You could even transfer any ISAs held elsewhere to us so you can see them all in one place.
2. Invest for your Children with a Junior ISA
ISA allowance: £9,000
A Junior ISA allows you to invest for your child’s future – without paying any UK Income or Capital Gains Tax on the money it makes. You could do this by investing little and often or by adding a lump sum. You’re allowed to put in up to £9,000 per tax year, per child.
3. Add to your pension
Contribute up to £60,000 each tax year
Maybe you want to pay more into your workplace pension plan. Or you could be self-employed and therefore don’t have a workplace pension. If you fall into the latter category, you might want to consider a personal pension to help keep your money working towards your retirement.
Personal Pensions, which work differently from workplace pensions, have several tax advantages that could help you manage your money better, including:
- Instant basic rate tax relief – You get a 25% top up on what you put in – £100 turns into £125. If you pay more than the basic income tax rate, you could claim additional tax relief through your self-assessment tax return. It’s worth noting, though, that there is a limit on how much tax relief you get each tax year.
- Tax-efficient growth – Once invested, your money grows free of UK taxes.
- Tax-free lump sum – When you take your money out, you can usually take up to 25% tax free, capped at £268,275.
The amount you can contribute to your pension each tax year has gone up to £60,000 – that’s £20,000 more than last year. You could add a one-off payment or save monthly. Don’t worry if you don’t use your full pension allowance in a year you may be able to carry it forward to use in future years.
Even if you don’t have an income, you could save up to £2,880 into a pension each tax year and the government will raise it to up to £3,600, depending on how much you put in. Again, you can make this saving as one lump sum or in smaller, monthly amounts if better for you.