Archived article: This article was correct at the time of publishing. Tax, investments and pension rules can change over time so the information below may not be current.

How to make sure you don’t pay more tax than you need to

With the looming self-assessment deadline, tax is currently at the forefront of many people’s minds. And while tax is essential to the running of the country, it can still be painful to settle a big tax bill. It’s important to remember that the Government doesn’t just take tax – it also gives you a number of generous allowances for saving tax. Here are a few easy ways to take advantage of them.

tall for seminar Andy Cowan
08 January 2018

Use your £20,000 ISA allowance

If you want to use this year’s ISA allowance you have until 6 April. You can invest up to £20,000 in your ISA and your investments will be tax-free. You don’t have to declare ISAs on your tax return either.

You could still take advantage of your ISA allowance if you don’t have any new money to invest. If you hold investments in other accounts, simply transfer them into your ISA and you won’t pay tax on any future growth or income.

You can open a Stocks & Shares ISA with Bestinvest in just a few minutes. Simply open an account online, download the paper application forms or call us on 020 7189 9999.

Open an ISA


Make pension contributions

You get tax relief on anything you pay into your pension up to your annual allowance (£40,000 or less). The Government tops up your contributions by 20% automatically, and higher or additional-rate taxpayers can claim back another 20% or 25% through their tax return.

Find out more about our multi-award winning personal pension, the Best SIPP.

Capital Gains Tax

Capital Gains Tax is a tax on the profit you make when you sell an asset. The allowance is currently £11,300 and it doesn’t roll over between years. If you are worried about a future tax charge you could consider selling some of your assets this year to use your allowance before you lose it.

Do you receive dividends?

You can currently receive £5,000 of dividend income without paying Income Tax. However, the Dividend Allowance is reducing to £2,000 at the beginning of the 2018/19 tax year. If you rely on dividend-paying shares for a regular income, you could move these shares into an ISA where the payments will be tax-free.

Personal Savings Allowance

You can earn up to £1,000 interest (or £500 if you are a higher-rate taxpayer) from your cash savings accounts without paying Income Tax. The allowance isn’t available for additional-rate taxpayers.

For more information about our pension or ISA, or if you need help using your tax allowances, please get in touch. Send us an email at, call us on 020 7189 9999 or request a call back.

Do you have questions about tax?

Our experts are here to help you make the most of your tax allowances:

Advice in relation to tax planning is not regulated by the Financial Conduct Authority, however, the products used to mitigate tax may be regulated. SIPPs are not suitable for everyone. If you don’t want to invest across different asset classes or don’t think you will make use of the investment choices that SIPPs give you then a SIPP might not be right for you and you should seek advice or guidance before taking any action.