How to prepare for Tax Year End

Each April, high net worth individuals find themselves at a critical juncture – Tax Year End. This is a pivotal period which requires lots of careful planning and decision making to optimise financial outcomes and make the most of ever-evolving tax regulations. So, what does Tax Year End signify, how do we prepare, and what are the key rules to be wary of as a high net worth individual?

Understanding Tax Year End

As the deadline for several tax-related reliefs, payments, and activities, Tax Year End is a crucial date for all taxpayers to consider.

It’s a particularly important time for understanding which tax band you sit in and identifying the allowances available to you.

Before Tax Year End

There are several things you can do as a high net-worth individual (or, indeed, anyone in the UK) before the end of the Tax Year to benefit future-you.


Any interest earned on your cash in an ISA is free from tax, as is income or capital gains from investments in an ISA. With four types of ISA (cash, stock and shares, innovative finance, and Lifetime), you can save up to £20,000 in one type of account or split your allowance across other types too. It is important to remember though, that you can only pay £4,000 into a Lifetime ISA (LISA) per tax year.


Children benefit from tax efficient ISAs too. With an allowance of £9,000 per year, you might consider contributing to a Junior ISA (JISA) for you child, watching the fund grow tax-free, and the giving your children a nest-egg when they turn 18.

Retirement Planning

There are several different avenues to take when it comes to retirement planning. You may choose the aforementioned LISA – a lifetime individual savings account designed for those between 18 and 40 years old who are saving for their first home or retirement. If you do open a LISA for retirement purposes, you will be able to access it from the age of 60.

Otherwise, you might prefer pension contributions. These are a contribution of any amount up to your annual ‘relevant earnings’ (with a maximum of £60,000 or greater if carry forward is available). It is important to note that this carry forward rule allows an individual to carry forward their previous three years of unused allowances. These contributions provide you with tax relief at the marginal rate.

CGT Allowance

The Capital Gains Tax allowance is key for this Tax Year End. As we move into tax year 24/25, CGT allowance will be halved from £6,000 (currently) to £3,000. So, for some high net worth individuals, it could be worth utilising the £6,000 allowance while we still have it.

Dividend Allowance

If you have invested assets, you can also benefit from a dividend allowance (currently at £1,000 per year paid tax free). You will, however, pay dividend tax rates on anything above £1,000.

Like CGT, the dividend allowance is reducing by half (to £500) in the 24/25 Tax Year. So it’s another one to use before April rolls around.

Estate Planning

For high net worth individuals, estate planning is crucial. A good Financial Planner will help you evaluate your estate plan, taking changes in tax laws into account.

Where relevant, they will also support you with gifting. In some cases, gifting works out to be an efficient way of reducing tax on your estate. This includes gifts of money, household and personal goods (like jewellery or furniture), a house, land, or building, stocks and shares on the London Stock Exchange, and unlisted shares which you held for less than two years before your death.

If you give a gift more than seven years before you die, the gift won’t be subject to Inheritance Tax.

Though, if you do give a gift less than seven years before you die, you may be taxed depending on:

  • Who the gift is given to (and their relationship to you
  • The gift’s value
  • When the gift was given

You can give away a total of £3,000 worth of gifts per tax year to be excluded from your estate. Though, gifts between spouses or civil partners are exempt from Inheritance Tax.

For more information, here’s the government page on Inheritance Tax.

Charitable Contributions

Philanthropic giving is a great allrounder. Not only do you benefit from rules which state donations by individuals to charity or community amateur sports clubs are tax free. But you also get to feel part of something, contribute to a cause or organisation that you care about, and make a difference.

Through strategic planning, thoughtful consideration, and adherence to ever-evolving tax rules and regulations, high net worth individuals can navigate Tax Year End with confidence. Engaging with your financial planner throughout the year will empower you further to make informed and timely decisions.



This document is marketing material for a retail audience and does not constitute advice or recommendations. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.

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