The 2025 Six Nations starts on Friday 31 January as France take on Wales at the Stade de France.
After five rounds of matches over the subsequent seven weeks, it ends on the evening of 15 March at the same venue as the French face Scotland.
The tournament has long been one of the highlights of the rugby calendar for northern hemisphere rugby fans. New storylines develop throughout each event, and having the games played across a weekend with coverage on terrestrial TV adds to the accessibility and drama.
Crucially, it might also be a big reminder for you that the tax year end is fast approaching. Find out why.
The Six Nations creates a “bridge to spring”
As well as offering up compelling drama, the Six Nations also provides sports fans with what is sometimes described as a “bridge to spring”.
It starts in the depths of winter with snow on the ground, and ends in mid-March with the first signs of spring becoming visible.
There is also a financial planning angle to the timing of the Six Nations, as it provides a handy countdown towards the end of the tax year on 5 April.
This is probably the most important date in the financial planning calendar, as many of your tax allowances, exemptions, and reliefs become available again for the 2025/26 tax year at the applicable level.
Before they kick off in Paris, you need to have completed your 2023/24 tax return
However, before you start thinking about your end of 2024/25 tax planning, you need to ensure you have ticked off 2023/24 and submitted your self-assessment tax return for that year if required to do so.
The deadline for this is 31 January so make sure you have submitted yours before the kick-off in Paris.
If you have not already done so, we would suggest you make this a priority, as you may have to request information from various sources in order to complete it.
Furthermore, you will be fined £100 if it is sent after the deadline, with additional penalties for further delays if you owe any tax.
As well as avoiding a fine, when you complete your return, you may find you are actually owed money by HMRC. For example, if you are a higher or additional-rate taxpayer, you will claim higher rates of pension tax relief through your tax return.
You may also want to read our other article about why it is so important to be aware of scams around the self-assessment deadline.
5 valuable steps to take before the end of the tax year
Once you have sorted 2023/24, it is worth using the Six Nations reminder to think about how you can make the most of your wealth before the end of the 2024/25 tax year.
Here are five steps you could take to do exactly that.
1. Maximise your own pension contributions
You, and others on your behalf including employers, can pay up to the Annual Allowance (up to £60,000 in 2024/25) into your pension each tax year without suffering a tax charge. Your Annual Allowance may be reduced if your earnings exceed certain thresholds, or you have already flexibly accessed your pension.
In terms of your own contributions, you receive tax relief at your marginal rate of tax on contributions up to 100% of your earnings this tax year (or £3,600 if more).
Typically, for every £80 you contribute to your pension, the government automatically adds a further £20 in tax relief. If you pay tax at a higher rate, you can then claim any higher- or additional-rate relief through your 2024/25 self-assessment tax return. Bear in mind that tax relief counts towards your Annual Allowance.
You may also be able to carry forward unused Annual Allowance from the three preceding tax years. This means that you can currently carry forward any of your remaining 2021/22 Annual Allowance (up to £40,000) but after 5 April, that particular year will be gone.
2. Contribute to a pension for your spouse or partner
As well as paying into your own pension, you may also want to ensure that your spouse or partner is maximising their contributions. Furthermore, you can contribute to their pension on their behalf, and they will receive tax relief at their marginal rate of Income Tax, provided the contributions you make plus any that they make personally, do not exceed 100% of their earnings this tax year (or £3,600 if more).
Even if they are not working, they are still able to contribute to a pension and receive basic-rate Income Tax relief.
In these circumstances, you can pay up to £2,880 net for them in each tax year into a pension, and see that amount boosted by tax relief to £3,600.
That is effectively 25% growth on the contribution, without having to do anything.
3. Take steps to avoid a potential 60% tax trap
In addition to helping secure your financial future, another good reason for making pension contributions is that they can help you avoid a punitive level of tax on part of your earnings.
That is because if you earn £100,000 or more, your tax-free Personal Allowance of £12,570 is reduced by £1 for every £2 you earn over £100,000.
This means that you could effectively pay a marginal tax rate of 60% on income between £100,000 and £125,140.
One way to avoid this is to pay earnings above the £100,000 into your pension.
Not only will you then avoid having to pay 60% Income Tax on a proportion of your earnings, but you can also claim the higher rates of relief back through your tax return.
4. Make the most of your annual ISA allowance
You can contribute up to £20,000 across your tax-efficient ISA savings or investment accounts in the 2024/25 tax year.
Any gains within an ISA are free from Capital Gains Tax (CGT) so it makes financial sense to use this allowance, particularly if you are a higher- or additional-rate taxpayer.
Also, you will not pay any Income Tax on the interest or dividends you accrue from your ISA.
The £20,000 annual ISA allowance applies to all individuals over the age of 18, with transitional provisions for Cash ISAs for those aged 16 or 17 on 5 April 2024. So, you and your spouse or partner can tax-efficiently save £40,000 between you each year.
If you do not use your ISA allowance before the end of the tax year, you will lose it and it will reset. So, it can be sensible to make the most of it.
5. Use your Capital Gains Tax exemption
You can make CGT-free gains from any investments you hold outside your pension or ISA of up to £3,000 in the 2024/25 tax year. This is your “Annual Exempt Amount”.
This exemption cannot be carried forward into the next tax year, so it can be important to make the most of it to reduce any future liabilities you may incur.
Again, the exemption applies to each individual. So, if you are married or in a civil partnership, you can transfer assets between you to enable you to use your combined annual CGT exemption of £6,000 as long as any transfers represent genuine and outright gifts.
Get professional advice
This article has provided you with a high-level overview of some of the steps you can take between now and the end of the current tax year to mitigate the amount of tax you pay, and to take advantage of available reliefs.
Clearly, your personal financial circumstances are unique to you, so we would strongly encourage you to get advice from a professional about your financial and taxation arrangements.
If you would like to talk to someone about your own arrangements, then please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The Financial Conduct Authority does not regulate tax planning.
The value of your investments can go down as well as up, so you could get back less than you invested.
