Half time score

Half-time score? Six months to the end of the tax year 2022/2023

25 October 2022

As half-term looms around the corner, and life is busy, busy, busy, it is easy to forget the tax allowances available in a tax year. We appreciate that the topic is perhaps not the most riveting, but maybe this year more than ever, using tax allowances earlier to make your money go further might be worth looking at. In past years, there has often been a scramble in late March and early April to use up what's allowed and affordable as the deadline of 05 April (the end of the tax year) is reached. Many love a deadline, even though they have had a full twelve months to take action and get their financial planning in order.

With just under six months to go, we thought we would post a reminder of some of the current allowances that might be used in this tax year 2022/2023 to potentially save tax, which may save money:

Standard Annual Allowance

Amount

Individual Savings Account (ISA)

£20,000

Junior ISA (JISA) and Child Trust Fund (CTF)

£9,000

Lifetime ISA (LISA)

Subject to eligibility criteria and counts towards standard ISA allowance

£4,000

Capital gains tax allowance

£12,300

Annual gift allowance (for inheritance tax purposes)

£3,000

(You can go back one year if you did not use the tax year allowance in 2021/2022)

Pension contribution (standard annual allowance)

£40,000 gross from all sources

(The limit may be higher or lower than this amount dependent on your individual circumstances)

Personal income tax allowance

£12,570 gross

Personal savings allowance

£1,000 gross for basic rate taxpayers

£500 gross for higher rate taxpayers

Nil for additional rate taxpayers

Dividend tax allowance

£2,000 gross

Most tax allowances are renewed each year and are lost if not used within the tax year. As suggested, looking at your tax allowances well before the end of this tax year might be worthwhile, along with a review of your overall financial planning with the aim of making your money work as hard as it can as fuel bills rocket this month.

No individual advice is provided during the course of this blog.

Keith Churchouse FPFS
Director
CFP Chartered FCSI
Chartered Financial Planner

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899


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