Our employees are able to work remotely so that they can follow social distancing rules while continuing to advise clients and manage portfolios.  To help us during these unusual times, wherever possible please avoid sending post to our offices – instead, please use email or phone, or secure messaging available via My Tilney.

Your new tax allowances for the 2021/22 tax year

Following one of the most challenging and unpredictable 12 months in recent memory, the new tax year has finally arrived and with it comes a range of refreshed tax allowances.

Saved some extra money during the previous tax year?

The start of a new tax year is typically a time when people review their finances and plans for the future. What is different about this tax year is that some people have found they have saved extra money by not going out so much or going on holiday over the past few months.

Here are some you ways you could put that money to good use:

  • If you want to save for a child, you can pay up to £9,000 into a Junior ISA

Please bear in mind that the value of ISAs and pensions can fluctuate and you could end up with less than you originally invested.

Other useful tax allowances to be aware of

  • The personal allowance has increased to £12,570 and the basic-rate band is now £37,700
  • The Personal Savings Allowance, a tax-free allowance for interest, is £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers
  • A £2,000 tax-free allowance for dividend income
  • The Capital Gains Tax allowance of £12,300

  • Various financial gift tax allowances, which are extremely useful if you are looking to give money away.

Speak to us

If you want to make the most of your tax allowances this year, speak to Tilney to find out how we can help. You can book an appointment online or call us on 020 7189 2400.

Book now

Prevailing tax rates and reliefs depend on your individual circumstances and are subject to change. This article does not constitute personal advice.  If you are in doubt as to the suitability of an investment please contact one of our advisers.

You may also like

Tax-efficient investing

Financial planning

Budget 2021: highlights and key changes

Financial planning

Tax planning and advice from financial planners

Issued by Tilney Financial Planning Limited.

Recent articles