A variety of investments, including Individual Savings Accounts, can be held in a tax-efficient manner (ISAs). These may enable you to pay less in taxes altogether. Your entire £20,000 limit (for 2022–2023) may be split between a Stocks & Shares ISA, a Cash ISA, or any combination of these. The interest or dividends you earn from an ISA are not subject to income tax, and any investment profits are exempt from capital gains tax.

Use your annual allowance.

You can think about carrying forward any unused yearly allowance from prior years, which is applicable to all of your private pensions, and using it to offset any tax increase brought on by the freeze. If you were a member of a registered pension system during the applicable time period, carry forward enables you to utilise any yearly allowance that you might not have used during the three prior tax years. But there are some requirements that must be completed in order to use carry forward.

Please contact us for more information on how we can help protect your future financial well-being and the options available to you.