Welcome to the 2019/20 tax year - here's what's changed

The 2019/20 tax year kicked off on 6 April 2019, and with it comes a wave of changes you need to know about. We’ve summed up the most important updates below to ensure you’re prepared for the new tax year.

What’s changed?

  • Income tax – the amount you can earn before you need to pay basic rate tax at 20% - also known as a ‘personal allowance’ - has increased from £11,850 to £12,500. If you’re a higher rate tax payer (40%), the amount you can earn has increased from £46,350 to £50,000 before the higher rate kicks in.
  • ISAs – the amount you can save tax-free in an Individual Savings Account (ISA) remains at £20,000 for the 2019/20 tax year. This includes cash ISAs and stocks and shares ISAs.
  • Tax reliefs and allowances

    - Capital gains tax: this is a tax you pay on the profit you make when you sell something that has increased in value. The tax-free allowance has increased from £11,700 to £12,000.

    - Annual allowance: the amount you can pay into your pension while still receiving tax relief remains at £40,000.

    - Lifetime allowance: this is the limit on the amount of pension benefit you can draw from pension schemes (lump sum or retirement income), and can be paid without triggering an extra tax charge. This has increased from £1.03 million to £1.055 million for the 2019/20 tax year

    • Auto-enrolment minimum contributions – the employer minimum contribution has increased to 3%, staff contribution to 5%, which means the total minimum contribution is now 8%.
  • What do I need to do?

    We previously talked about preparing for the new tax year, the top three allowances you need to consider maximising, and how best to plan for disinvesting. But the beginning of a new tax year could mean checking in with your adviser if you already have one, or seeking financial advice to ensure you’re fully informed about how the 2019/20 tax year changes could affect you or your business.

    A qualified financial adviser will assess your situation and make recommendations based on your circumstances. AFH advisers are independent, which means we take a whole-of-market approach to provide solutions tailored specifically to you. You should always seek professional advice before taking any course of action.

Subscribe to our newsletter

Enter your email address to receive the AFH Wealth Management newsletter.

By subscribing you agree to the AFH Group privacy policy.


Find all the latest industry news, all written by our in-house industry experts.

Dealing with volatility

Bumpy rides in the stock market are nothing new, but they can be hard for investors to deal with. In the last few weeks, we’ve seen more stock market volatility, with energy prices and supply chain fears weighing on prices.

Read now

What might we expect from Rishis Budget

As the Conservative Party sets out its stall this week at the conference, many eyes will be on Rishi Sunak for clues as to how he will change our personal finances with his Budget on October 27.

Read now

How to plan to give the legacy you want

Many of us hope to give money to our loved ones when we die, but rules around inheritance tax can mean that we end up giving a lot of it to the taxman.

Read now

Five lessons for us all as China bans crypto

If you’ve bought into Bitcoin, Ethereum or other cryptocurrencies, chances are that you have already heard about the seismic shock that reverberated through the market last week.

Read now

Find out how we can help you:


Book a consultation


Our offices