Tax hub
Important information - investment value can go up or down and you could get back less than you invest. If you're in any doubt about the suitability of a Stocks & Shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.
What is Tax Year End?
The UK tax year always begins on the 6 April and ends on 5 April the following year. So the end date of the current tax year is 5 April 2025.
The current tax year we are in is tax year 2024/2025. This is because the tax year began in 2024, and ends in 2025.
If you still need to know more of the basics around tax, read our guide on tax rates and allowances.
Why does Tax Year End matter?
Tax Year End matters because it’s usually the last opportunity you have to use your annual ISA allowance, currently £20,000, and your annual pension allowance, currently £60,000. Not only that, but any newly announced financial rules usually take effect in the new tax year.
On 6 April 2024, the Capital Gains Tax (CGT) exemption was reduced from £6,000 to £3,000.
How does the tax year work?
The UK tax year provides a framework for the assessment and collection of taxes. When a new tax year begins, your tax allowances reset. This includes allowances for income tax, capital gains tax, ISAs and SIPPs, and lots more.
Making the most of your ISA and SIPP allowances before the tax year end is a strategic financial move. Your ISA and SIPP savings can grow free from income tax and capital gains tax, and money paid into a SIPP also receives a free government top up from Tax Relief.
Take a look at tax year allowances you need to know about below.
What are the annual allowances?
| Tax year | 2024/25 |
| ISA subscription limit | £20,000 |
| Junior ISA (JISA) subscription limit | £9,000 |
| SIPP Annual Allowance limit | up to £60,000* |
| SIPP Money Purchase Annual Allowance (MPAA) | £10,000* |
Read more: ISA allowances | SIPP contributions
Two important changes from April 2024
- The annual Capital Gains Tax exemption halved from £6,000 to £3,000. Find out more.
- The annual tax-free dividend allowance also halved from £1,000 to £500. Find out more.
Things to do before end of tax year
- Top up your ISA. To make use of the current tax year allowance, make sure you’ve topped up your ISA and added cash before the tax year ends – even if you’ve not decided how to invest it. So long as you have contributed before your £20,000 allowance refreshes.
- Build a nest egg. If you’ve got children, you can also open a Junior ISA and begin saving for when they turn 18. This can help with those big expenses they might face in early life – like university, or their first car.
- Make pension contributions. Tax Year End is a good time to reassess your pension and make any last minute contributions. Unlike ISAs, you can roll over any unused allowance from the past three years and claim tax relief. Check if you have unused years before you lose them.
- Use your CGT allowance. Capital Gains Tax rules are changing. Once the new tax year starts your capital gains allowance will reduce from £6,000 to £3,000 and it can’t be rolled over. So, if you’ve been planning a sale, consider selling before the tax year ends to make the most of your allowance before it shrinks.
- Get dividend savvy. If you invest outside of a SIPP or ISA, such as a Trading Account, your personal dividend allowance is also reducing in the new tax year from £1,000 to £500. Before making any new investments in your Trading Account, consider making them in your ISA where you have an uncapped ISA dividend benefit.
Don’t have a Stocks and Shares ISA or a SIPP?
Open an account today to start using your tax allowances.
Stocks and Shares ISA
Shelter up to £20,000 this tax year with the UK's No. 1 flat-fee investment platform.
- Control - you can choose where your money is invested, make changes whenever you want, and access your cash at any time.
- Low cost - we charge a low, flat fee. Most providers charge a percentage fee that grows with the value of your investments.
- Security - your investments are safe with us. Your money is always kept separate from our own, and we are fully FSCS protected.
Tax rules can change and the benefits of investing in ISAs depend on your circumstances.
Read more about our ISA fees and charges.
Self-Invested Personal Pension
Contribute up to £60,000* into your pension this tax year and take advantage of a range of generous tax advantages.
- Low cost - Open our Which? Recommended SIPP for a low, flat fee. Most providers charge a percentage fee that grows with your pension.
- Convenience - if you transfer your other pensions to our SIPP, you'll be able to see everything in one place, and pay just one monthly fee.
- Flexible retirement options - when you reach 55 (57 from 2028), we provide a range of options for taking an income from your pension. Unlike many other providers, there is no extra charge for this.
Read more about our SIPP charges.
*You can contribute 100% of your annual income to your SIPP each tax year, up to the maximum annual allowance of £60,000. When you start taking a taxable income from your SIPP you trigger the Money Purchase Annual Allowance (MPAA). This reduces your annual allowance to £10,000.
Important information: A SIPP is for those wanting to make their own investment decisions when saving for retirement. As investment values can go down as well as up, the amount you retire with could be worth less than you invested. Usually, you won’t be able to withdraw your money until age 55 (57 from 2028). Before transferring your pension, check if you’ll be charged any exit fees and make sure you don't lose any valuable benefits such as, guaranteed annuity rates, lower protected pension age or matching employer contributions. If you’re unsure about opening a SIPP or transferring your pension(s), please speak to an authorised financial adviser.
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Important Information
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This year's adult ISA allowance is £20,000 – so if you have cash to spare and unused allowance, or shares in a Trading Account, now is the time to make your money work harder. The more you pay in now, the more time your money has to grow. With ii, you only pay a low monthly flat fee for your entire subscription and not for each account.
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My husband has been holding Trading and SIPP accounts with ii for over a year and is happy with it so I have just opened my ISA account too. I like its fixed subscription fees.
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The value of your investments may go down as well as up. You may not get back all the money that you invest. If you are unsure about the suitability of an investment product or service, you should seek advice from an authorised financial advisor.
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Please remember, SIPPs are aimed at people happy to make their own investment decisions. Investment value can go up or down and you could get back less than you invest. You can normally only access the money from age 55 (57 from 2028). We recommend seeking advice from a suitably qualified financial advisor before making any decisions. Pension and tax rules depend on your circumstances and may change in future.
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Important information - investment value can go up or down and you could get back less than you invest. If you're in any doubt about the suitability of a Stocks & Shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.