Brits are being warned they could miss out on up to £1,500 if they don’t take advantage of tax-free allowances. Savers have four days to make the most of certain perks before the financial year ends on Sunday (April 5).

Michele Tieghi, Financial Expert and Founder of psyfi money, explained four tax-free allowances savers might want to consider before the deadline. She said: “Many Britons are missing out on thousands each year by not taking advantage of tax-free allowances available to them.”

Michele said using up all of your tax-free allowances is an efficient way to save money and this includes the ISA allowance.

She added: “[It] allows you to put up to £20,000 per tax year into ISAs (Cash, Stocks and Shares, or a mix).

“This means you will pay no tax on interest, dividends or capital gains, so maximising your ISA will increase your savings.”

The expert explained putting £20,000 into a Cash ISA with a 5% interest rate would earn you £1,000 completely tax-free.

This would normally be subject to 20% tax (£200) for basic-rate taxpayers, or 40% tax (£400) for falling into the higher bracket.

Capital Gains Tax allowance lets you make a profit of up to £3,000 tax-free from the sale of investments. This includes shares, crypto and property, but not your main home.

Michele said: “If you haven’t already maximised this, then it would be wise to sell some assets.

“Any assets sold outside of this allowance are subject to an 18% tax for basic rate taxpayers and 24% for those in the higher rate bracket. Based on £3,000, this would be £540 or £720.

Michele said if you do not currently have any investments outside of an ISA, then you should consider doing so now to maximise your savings next year.

She added: “Low-cost index funds/ETFs (Exchange Traded Funds) are a good option for more low-risk investing. This could also be a way to offset the future ISA allowance reduction, which will drop from £20,000 to £12,000 after April 6, 2027 (for people aged under 65).”

If you have shares, each year you are entitled to up to £500 in Dividend Allowance.

Michele explained: “This allowance has shrunk massively in recent years, but it is definitely worth maximising.

“The amount you pay in tax on dividends again depends on which income band you fall into.”

She said 8.75% applies to the basic-rate, 33.75% at the higher-rate and 39.35% for the additional-rate.

Michele said: “Finally, you have your personal savings allowance, which offers tax-free interest on your savings depending on your income.”

She said basic-rate taxpayers on 20% get a £1,000 allowance; higher-rate payers with 40% get £500 and additional-rate payers at 45% get no allowance.

The expert added: “Utilising this allowance would save basic-rate and higher-rate taxpayers £200.”

Under the Personal Savings Allowance, basic-rate taxpayers can earn £1,000 in interest each tax year without paying tax on it.

Those who do not pay tax, meaning people whose annual income is less than £12,570, may be able to earn up to £18,570 in interest on savings free of tax.