Published On: Fri, Apr 5th, 2019

End of tax year: ISAs, pensions, tax allowances ALL changing TOMORROW – how it affects YOU | Personal Finance | Finance

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The 2018/19 tax year will come to and end tomorrow as the new commences on April 6. The new fiscal year will see changes to your personal tax thresholds and allowances including ISAs, pensions and tax allowances. With the end of the tax year nearing, here’s a rundown on what you need to know about tax changes for 2019/20.

ISAs

The amount you can put into your ISA will remain at up to £20,000 for the 2019/20 tax year.

This includes Cash ISAs and Stocks & Shares where the interest and gains received on money saved is tax-free.

You can also put £4,000 into your lifetime ISA, which will help you save for a first home or retirement and will count towards your overall £20,000 limit.

The only major change to ISAs this year is the Junior ISAs, which will rise slightly from £4,260 to £4,368.

READ MORE: New tax changes 2019: All the tax changes to expect on April 6

Pensions

This year, retirees will receive extra money as the state pension gets a boost in the 2019/20 tax year.

The state pension will rise by approximately £4.25 a week or £220 a year from April 6.

This means the full state pension will be worth £168.60 per week after rising from £164.35 a week.

The basic state pension, paid to people who reached state pension age before April 2016, will go up from £125.95 a week to £129.20.

The level of the state pension rises every year by the highest of 2.5 percent growth in earnings or Consumer Price Index (CPI) inflation.

This is thanks to something called the “triple lock” guarantee, which has given pensioners’ incomes a strong boost since its introduction in 2010.

Since December 2018, the state pension age will rise for both men and women, until it reaches 66 in October 2020 and 67 between 2026 and 2028.

Between 2037 and 2039 the age looks set to rise again to 68, but the revised timetable has not yet been confirmed.

Tax allowances

Personal allowances will rise to £12,500 for the 2019/20 tax year, while the basic rate limit will be increased to £37,500 for the same period.

As a result, the higher rate threshold will be £50,000 in 2019 to 2020.

Changes to the basic rate limit will apply to non-savings and non-dividend income in England, Wales and Northern Ireland and to savings and dividend income in the UK.

Since April 2017, the Scottish Parliament sets the basic rate limit and higher rate threshold for non-savings, non-dividend income for Scotland.



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