Financial traps people fall into over the years
Avoid these common money mistakes
Emma Simon
Investment writer
13 December 2024
Tax allowances
Invest tax-efficiently to make the most of your money
Important information - please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest.
Don't pay more tax than you need to
People rarely invest to make money for money’s sake. They invest for what matters to them. If this strikes a chord, you’ll want to make the most of whatever money you're putting aside - be it for yourself, your retirement or your children. An effective way to do this is to use your valuable tax allowances.
But what is a tax allowance? Most people get a personal allowance - an amount of income you don't have to pay tax on. Any income above this is taxed at your income tax rate. You also have tax-free allowances for things like savings interest, dividend income and capital gains. An Individual Savings Account (ISA) is a tax-exempt account - as long as you don’t contribute more than its annual allowance allows. Self-Invested Personal Pension (SIPP) contributions are eligible for tax relief within pension allowances.
Scroll down for information on tax allowances, including news on the latest government changes to allowances, and how different tax-efficient accounts compare.
Tax-efficient investing
Find out how tax-efficient accounts work in practise and how you can make the most of them.
What's new
We'll keep you updated with the latest tax allowances news.
Tax-efficient accounts and allowances
ISAs and SIPPs
Learn more about how each account works and how they could suit your future goals.
Make the most of your pension allowances
Explore what pension allowances and limits apply to you and how to maximise your pension savings.
Capital Gains Tax
Learn more about Capital Gains Tax and why you don't pay it on your ISA or SIPP investments.
Passing on wealth and inheritance
Learn more about passing on wealth to your loved ones and ways to invest an inheritance.
Investing for children
Invest tax-free for a child's future with a Junior ISA and SIPP.
Other tax allowances
Expert insights and further support
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Need a little more help?
If you have more than £100,000 to invest, our financial advisers can help. Fidelity offers a no-obligation, free and informal chat in the first instance. The initial discussion lasts about 30 minutes. It’s a two-way conversation where we’ll get to learn a bit about you. And you can ask as many questions as you like too.
The adviser will also explain the advice fee structure during this initial discussion. You can then decide whether to proceed.
Find out more or call 0800 222 550 to set up an appointment.
Important information - Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a Junior ISA will not be possible until the child reaches age 18. You can't normally access money in a pension until age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity's advisers or an authorised financial adviser of your choice. You should regularly reassess the suitability of your investments to ensure they continue to meet your attitude to risk and investment goals.
