Elaine Shiels

Written by: Elaine Shiels and Rachael Brown

Elaine Shiels


Maximise your end-of-year tax allowances

It will not be at the forefront of minds but, as the 2019/20 tax year draws to a close, it’s worth thinking about whether you’ve made the most of your personal tax allowances for the year. Below is a reminder of the most common ones. 

Individual Savings Accounts (ISAs)

Income and capital gains generated within an ISA are tax-free and for the 2019/20 tax year you can invest up to £20,0000 in cash or stocks and shares. Top up your ISA before 6 April 2020 if you want to make use of the current year allowance. 

Don’t forget that you can also open ISAs for your children and the junior ISA limit is more than doubling from £4,368 to £9,000 from 6 April 2020.


Making contributions to a personal pension plan can be an effective way of saving for your retirement whilst simultaneously reducing your tax burden. The amount you can personally invest into a pension is restricted to your earnings for the tax year, and your annual allowances. High earners with income over £150,000 have had reduced annual allowances in recent years, but this will be relaxed from 6 April 2020 so that only those with income over £240,000 will have reduced annual allowances. 

If you earn more than £300,000 then beware, your annual allowance will taper down to just £4,000 in 2020/21. However, you can carry forward any unused allowances from the previous three tax years, so consider whether you can make additional pension contributions before 6 April 2020, when unused allowances from 2016/17 will be lost forever.

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