New tax year changes

New Year Tax Changes

https://www.ispeech.org

ISA rules become more flexible

Savers will be allowed to pay into multiple Isas of the same type (for example, cash, stocks and shares) in the same tax year. Previously you were limited to paying into one Isa of each type per tax year.

State pension up by 8.5%

People getting the state pension will see a boost (8.5%) to their income from April 2024. Those entitled to the full level of new state pension will get £221.20 a week, up from £203.85 this year. This equates to £11,502 per year, up from £10,600.

Take action: You now have only a year to plug gaps in your National Insurance record going back to 2006. Read more: Deadline for voluntary National Insurance contributions extended to April 2025 – GOV.UK (www.gov.uk)

CGT allowance halved

The capital gains tax (CGT) allowance is the amount of tax-free profit you can make from selling valuable items or additional properties.

It’s falling again to £3,000 in 2024-25, having been at £6,000 in the past year.

Dividend allowance cut again

What you can earn tax-free from dividends is falling again from £1,000 to £500 a year.

National Insurance rates

The Class 4 rate, paid by self-employed people on profits between £12,570 and £50,270, is falling from 9% to 6%, while Class 2 contributions have been scrapped. However, the 2% rate on income and profits above £50,270 still applies to both groups.

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