With the 2025/26 tax year-end fast approaching, now is the time to act. Last minute rush can be costly if it means missing out on the tax year-end deadline and, therefore, missing out on valuable allowances that can boost your finance planning and save you money.
Maximise your ISA allowance before it expires
A key priority this year is making the most of your Individual Savings Account (ISA) allowance. For the 2025/26 tax year, you can put up to £20,000 into ISAs across Cash, Stocks and Shares, Innovative Finance and LISAs. The real power of an ISA lies in its tax efficiency. All gains, interest and dividends within your ISA are tax-efficient. However, this benefit isn’t retroactive; it applies only if you act before the 6 April 2026 deadline.
Boost your retirement pot
The annual pension allowance for this tax year remains at £60,000 or 100% of your earnings, whichever is lower. Tax relief is applied based on your relevant earnings; if you have no or low earnings, you can still contribute up to £3,600 gross (£2,880 net). Maximising your contributions before the tax year ends gives your retirement pot another full year to grow and the benefit of the generous tax relief. This is especially crucial if you are:
• Looking to reduce your taxable income for the current year.
• Nearing retirement and want to maximise your pension pot.
• Planning a substantial pension top-up.
Don’t risk missing this year’s allowance, it can make a big difference in the long run.
Other key allowances to review include:
Capital Gains Tax (CGT) Allowance: This has been reduced to £3,000 for individuals (£1,500 for most trusts). If you are sitting on investment profits outside of an ISA or pension, utilising this allowance can save you a significant tax bill.
Dividend Allowance: This has been cut to just £500. Ensure your investments are structured to mitigate the impact of this lower threshold.
Junior ISAs: Don’t forget the younger members of the family. Funding Junior ISAs is a great way to pass on wealth tax-efficiently.
Gifting: Making gifts now can help reduce the value of your estate for Inheritance Tax purposes.
Spousal Transfers: If appropriate, splitting allowances with a spouse or registered civil partner can double your household’s tax efficiency.
Every action you take contributes to your family’s overall financial wellbeing.
Get professional support to meet the 6 April deadline
Tax rules and allowances regularly change, and navigating the changes on your own can be daunting. Seek professional advice now to ensure you make the most of what’s available and have a clear plan in place well ahead of the deadline. You’ll make informed decisions, avoid the 11th-hour panic and feel confident that you’ve used every allowance to its full potential.
Therefore, if you want to secure your finances and make the most of this tax year’s opportunities before 6 April 2026, contact us today. We are ready to help you navigate your options, and ensure your financial plans stay on track.
THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX PLANNING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY AND DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT. IT MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE. A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028, UNLESS THE PLAN HAS A PROTECTED PENSION AGE). THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD AFFECT THE LEVEL OF PENSION BENEFITS AVAILABLE. INVESTMENTS CAN FALL AS WELL AS RISE IN VALUE, AND YOU MAY GET BACK LESS THAN YOU INVEST.