Key tax allowances for the 2019/20 tax year

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Key tax allowances for the 2019/20 tax year

Some of the key tax allowances for the 2019/20 tax year, relating to personal financial planning, are:

  • The individual personal allowance rises to £12,500.
  • Higher rate tax threshold increases to £50,000.
  • Annual Capital gains tax allowance increases to £12,000.
  • The Individual Savings Account (ISA) contribution limit remains at £20,000.
  • For Junior ISA’s the allowance is increasing to £4,368.
  • For investments into eligible UK companies: The Venture Capital Trust (VCT) investment allowance remains at £200,000 and £1 million for investment into Enterprise Investment Scheme’s (EIS).
  • Pension lifetime allowance rises to £1,055,000.
  • State pension income increases by 2.6%.
  • Auto-enrolment pension contributions for employed individuals increase to 8% of qualifying earnings with 5% paid by employees and 3% paid by employers.
  • Mortgage interest relief for landlords reduces to 25%.
  • Dividend tax free allowance remains at £2,000.
     

Essential Wealth Management
1-2 Great Farm Barns
West Woodhay
Newbury
Berkshire RG20 0BP
Tel: 01488 669840
Fax: 01488 669216
Email: [email protected]

Essential Wealth Management is a trading style of Essential Wealth Management and Advice Ltd, registered in England Number 04020006. Registered Office: 1-2 Great Farm Barns, West Woodhay Newbury, Berkshire, RG20 0BP. Essential Wealth Management and Advice Ltd is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

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Approved by the Openwork Partnership on 13.10.2023