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Helpful new tax year facts that could affect you and your money

1. Tax- free savings

In the new tax year you can enjoy a new Personal Savings Allowance which means that, if you have a taxable income of between £17,000 and £43,000 a year, you can earn up to £1,000 a year of interest in savings and current accounts before you need to pay any tax on this. This is addition to any tax-free interest you may earn in an ISA.

2. The 40% tax threshold has increased as well

There’s an increase up to £43,000 in the amount you can earn before you become liable for the higher-rate of income tax at 40%. In April 2017 this will rise again to £45,000.

3. Increase in marriage allowance

If you have an income of £11,000 or less and your partner is a basic rate tax payer, you can now transfer £1,100 of your tax-free personal allowance to them.

4. New national living wage announced

Employees aged 25 and over are now entitled to a new national living wage of £7.20 an hour, an increase of 50p an hour with a target of reaching £9 an hour by 2020.

5. ISA allowance remains the same

As in 2015/16, you can invest up to £15,240 in an ISA during this tax year. The Junior ISA allowance is also unaffected and remains at £4,080.

6. New Innovative Finance ISA introduced

Also known as a peer to peer ISA, this new form of ISA lets you invest by lending money to businesses or borrowers, with growth being tax- free. However it is important to note that this new ISA is not protected by the Financial Services Compensation Scheme (FSCS)

7. New Dividend Allowance

There will no longer be any tax to pay on the first £5,000 of income you may earn from dividends this year. Basic rate tax payers who earn more than that amount in dividends will have to pay tax at 7.5%, while higher rate tax payers will have to pay tax at the rate of 32.5%.

If you would like help or advice on any of the new tax changes outlined above, or in fact any other financial matters where you’d like to know more, you can visit our website at or call and speak to one of our fully qualified financial advisers on 0800 092 1245

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Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

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