As the UK tax year ends on 5 April 2026, you have limited window to make the most of valuable tax allowances. Many of these benefits are “use it or lose it”, meaning they cannot be carried forward into the next tax year. Taking action now can help reduce your tax bill, boost long-term savings, and position your finances more efficiently for 2026/27.
1. Use your ISA Allowance
The Individual Savings Account (ISA) remains one of the most tax-efficient tools available.
- Annual allowance: £20,000
- Tax benefits: No income tax or capital gains tax on returns
- Cannot be carried forward
Maximising your ISA before 5 April protects your savings from rising taxes on dividends and capital gains.
💡 With tax-free allowances shrinking elsewhere, ISAs are becoming increasingly valuable.
Learn more about our Online ISA and Open an ISA today
2. Maximise Pension Contributions
Pensions offer some of the most powerful tax reliefs:
- Annual allowance: £60,000 (subject to tapering for high earners)
- Unused allowances from the previous three years may be carried forward
- Contributions reduce taxable income
This can be especially useful if:
- You’re approaching the £100,000 income threshold, where tax becomes highly punitive
- You want to restore your personal allowance or reduce child benefit charges
Learn more about our Personal Pension and Open a Pension today
3. Use your Capital Gains Tax (CGT) Allowance
For 2025/26:
- CGT annual exemption: £3,000
- Cannot be carried forward
Strategies include:
- Selling assets to crystallise gains within the allowance
- Transferring assets to a spouse to use both allowances
- Using a “bed and ISA” strategy (sell and reinvest in ISA)
4. Review your Income and Personal Allowance
The personal allowance remains:
- £12,570 (frozen until 2031)
However, it is reduced once income exceeds £100,000, creating an effective 60% tax rate band. Planning opportunities:
- Pension contributions
- Gift Aid donations
- Income deferral or timing strategies
5. Make use of Dividend Allowance
- Dividend allowance: £500 (2025/26)
- Cannot be carried forward
With dividend taxes increasing from April 2026, reviewing how you extract income (salary vs dividends) is increasingly important.
6. Consider Inheritance Tax (IHT) Planning
You can make tax-efficient gifts before year end:
- Annual gift allowance (typically £3,000)
- Potentially exempt transfers (PETs)
Early action is particularly relevant given upcoming reforms to:
- Business Property Relief (BPR)
- Agricultural Property Relief (APR) from April 2026
7. Check your Savings exposure
With higher interest rates:
- More savers are exceeding the Personal Savings Allowance
- Basic-rate taxpayers: £1,000
- Higher-rate taxpayers: £500
As a result, many are moving savings into ISAs to avoid tax on interest.
8. Use Family-Based Allowances
Tax planning across households can be highly effective:
- Marriage Allowance: Transfer up to £1,260 of personal allowance
- Spousal transfers of assets to utilise lower tax bands
- Junior ISAs for children (up to £9,000 annually)
9. Consider Advanced Investment Schemes (Higher Risk)
For experienced investors:
- Enterprise Investment Scheme (EIS)
- Seed EIS (SEIS)
- Venture Capital Trusts (VCTs)
These offer significant tax reliefs but come with higher risk and complexity.
10. Don’t miss key deadlines
To help you meet those all-important tax year-end deadlines, below are the key dates for ISA and pension contributions, account openings, pension withdrawals, and Bed & ISA transfers.
Making payments/Contributions
- ISA or pension payments must be received by close of business on 1 April 2026.
- If you’re paying by cheque, we need to receive it by 27 March 2026 (cheques can take up to five working days to clear).
- Remember to let us know you’re making a payment by adding it as an expected deposit on our platform by 1 April 2026.
New customers
- Sign up by 31 March 2026 to make contributions for this tax year.
- Once fully set up, clients will receive their welcome pack with their account details.
- This gives clients time to make payments before the 1 April 2026 deadline.
Pension withdrawals
- Submit the completed retirement request by 29 March 2026.
- Make sure clients have enough cleared funds in their account.
- A reminder that bank account details must be verified before we can process the request.
Bed & ISA
- Submit online no later than 29 March 2026.
- We can transfer up to 90% of the GIA value (maximum £20,000).
- For transfers over 90% of the value of the GIA, and for transfers from Joint GIAs, submit your request by 25 March 2026 to give enough time for selling investments and moving the money.
End-of-year tax planning is not just about saving tax—it’s about optimising your entire financial position. With frozen thresholds, reduced allowances, and upcoming rule changes, planning for 2025/26 is more important than ever. The key principle: Use your allowances, review your income, and act early.
Quick Checklist
- Max out ISA (£20,000)
- Contribute to pensions (£60,000 + carry forward)
- Use CGT allowance (£3,000)
- Review income near £100k threshold
- Use dividend allowance (£500)
- Consider IHT gifting
- Check savings exposure
- Review family tax planning
Making the most of tax allowances before 5 April 2026 can reduce liabilities and boost savings. Whether it’s ISAs, pensions, capital gains, or inheritance tax, proactive planning ensures you keep more of your wealth.
To learn more about how we can help you, please book a free initial consultation with one of our Financial Advisers.
Disclaimer
This article is for information only. Please do not act based on anything you might read in this article. Past performance is not a reliable indicator of current or future returns. This article contains general information only and does not consider individual objectives, taxation position or financial needs. Nor does this constitute a recommendation of the suitability of any investment strategy for a particular investor. It is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy to any person in any jurisdiction in which such an offer or solicitation is not authorised or to any person to whom it would be unlawful to market such an offer or solicitation.