Five Smart Tax-Saving Tips for 2025
Tax efficiency is a key part of financial wellbeing, and with the right strategy, you can make the most of your money. Here are Southover Wealth’s top five tax-saving tips to help you optimise your finances in 2025.
1. Maximise Your Tax Allowances & Reliefs
Each tax year presents opportunities to save through allowances and reliefs. Make sure you’re taking full advantage of:
Personal Allowance – The amount of income you can earn before paying tax.
ISA Allowance – Up to £20,000 can be sheltered from Income Tax and Capital Gains Tax in an ISA.
Pension Contributions – Tax relief is available on contributions up to the annual allowance.
Capital Gains Tax (CGT) Exemption – The tax-free threshold for gains on investments or property.
Dividend & Savings Allowances – Reduces tax liability on investment income.
Regularly reviewing your tax position ensures you are not missing out on valuable opportunities.
2. Assess Your Current Balances & Interest Rates
A financial spring clean is vital for optimising returns and reducing unnecessary tax liabilities. Check the interest rates on your:
Current & Savings Accounts – Ensure you’re earning competitive interest.
Investments – Consider rebalancing to align with your financial goals.
Pension Funds – Track performance and charges to maximise long-term growth.
Property Values – Understand how any capital appreciation might impact your tax position.
Premium Bonds – Assess if these remain a useful part of your savings plan.
3. Review Subscriptions &Memberships
It’s easy to lose track of ongoing subscriptions that no longer serve you. Review all standing orders and direct debits for:
Streaming services and digital subscriptions.
Gym memberships or club fees.
Magazine and news subscriptions.
Professional memberships.
Cancelling unused services can free up funds for more meaningful financial goals.
4. Set Up a Regular Savings Plan
A consistent savings habit ensures financial security over the long term. Consider setting up:
A monthly ISA contribution to benefit from tax-free growth.
A pension top-up to take advantage of tax relief.
An investment portfolio with long-term growth potential.
A children’s savings fund for future education or housing support.
Automating savings ensures consistency and removes the temptation to spend instead.
5. Schedule Regular Financial Health Checks
A six-monthly review with your financial adviser helps you stay on track, adjust to market changes and identify new tax-saving opportunities. An adviser can:
Ensure you are making the most of tax-efficient investment strategies.
Help navigate tax changes that could affect your financial plan.
Provide clarity during economic uncertainty or personal financial shifts.
The Smartest Financial Move: Taking Professional Advice
If you’re not already working with a financial adviser, now is the time to start. Professional guidance helps ensure you’re making informed decisions that align with your long-term financial goals. From tax efficiency to investment planning, a tailored strategy can help you:
Minimise tax liabilities.
Grow and protect your wealth.
Navigate financial challenges with confidence.
Important Information
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.
For personalised financial advice, contact Southover Wealth today.
