The UK tax year ends on 5 April 2026, and several allowances reset at that point. Reviewing your financial position ahead of the deadline can help you understand how the rules apply to your circumstances.
If you’d like support with this, our regulated advisers offer an initial conversation without obligation.
We’re based in Braintree, Essex, and support clients across Essex, Hertfordshire, London, and throughout the UK.
1. ISA Allowances: Are You Making the Most of Your £20,000 Limit?
For the 2025/2026 tax year, you can put up to £20,000 into ISAs. Junior ISAs allow up to £9,000 per child.
Eligibility varies by type: Cash ISAs are available from age 16, while Stocks & Shares ISAs require you to be 18 or over. Junior ISAs are for children under 18.
ISAs grow free from UK Income Tax and Capital Gains Tax. A Cash ISA keeps your savings protected, while a Stocks & Shares ISA invests in markets, meaning the value can fall as well as rise. Tax rules may change in future.
Using the full allowance isn’t automatically the right approach. It can help to think about how much access you might need to your money, your time horizon, and how ISA contributions fit into your wider financial plan
2. Pension Contributions: Understanding the Annual Allowance
For the 2025/2026 tax year, the standard Pension Annual Allowance is up to £60,000. It may be lower if:
- You’re affected by the Tapered Annual Allowance
- The Money Purchase Annual Allowance (MPAA) applies
- Your personal contributions exceed your level of relevant UK earnings
A few points are worth being aware of:
Personal contributions and tax relief
Personal pension contributions normally receive tax relief, but only up to the level of your relevant UK earnings.
Employer contributions (including company directors)
Employer contributions aren’t limited by your personal earnings, provided they meet the “wholly and exclusively” test for business purposes. This can be particularly relevant for company directors who make contributions through their business. If you’re unsure how this applies to your company structure, an accountant can help clarify the business expense rules.
Carry forward
You may be able to use unused allowance from the previous three tax years if eligible.
Pension contributions can grow tax efficiently, but access is usually restricted until minimum pension age, and withdrawals may be taxable. Pension rules and tax treatment may change.
3. Capital Gains Tax: Review Your £3,000 Exemption
The Capital Gains Tax (CGT) annual exemption is £3,000 per individual.
If you hold investments outside tax efficient wrappers, reviewing gains before the tax year ends can help you understand potential liabilities.
CGT rules and allowances may change in future years.
4. Dividend Income: Monitor the £500 Allowance
The dividend allowance is £500 per tax year.
Dividends above this threshold are taxed according to your income band. Reviewing your dividend income in the context of your overall earnings can help you understand your tax position.
5. Inheritance Tax: Use Your £3,000 Annual Gift Exemption
Individuals can gift up to £3,000 per tax year without it forming part of their estate for Inheritance Tax purposes. If unused, this exemption can be carried forward for one year, but the current year’s allowance is used first.
Gifting should be considered carefully to ensure it does not affect your long term financial security.
6. Investment Positioning: Inside or Outside Tax Wrappers?
Some people review whether certain assets are held inside tax efficient wrappers such as ISAs, pensions, or other eligible structures. Moving investments can have implications, including:
- Triggering Capital Gains Tax or Income Tax
- Creating transaction costs
- Affecting short‑term market exposure
Understanding how different wrappers are taxed can help you review your position. A regulated adviser can explain how the rules apply to your circumstances.
7. Junior ISA Contributions: Planning for Children’s Futures
Junior ISAs allow up to £9,000 per child each tax year. They can be held in Cash or Stocks & Shares form, and the funds are locked until the child turns 18.
A parent or guardian opens the account, but the child can take control of it from age 16. Reviewing contributions can help ensure they align with long term goals and affordability. Tax rules may change.
8. Income Changes: Check How They Affect Your Allowances
Salary changes, bonuses, or new income streams can influence:
- Pension tapering
- Dividend taxation
- Personal Allowance
- Eligibility for certain tax reliefs
- Child Benefit (via the High Income Child Benefit Charge)
Reviewing your income position before 5 April can help you understand how the rules apply.
9. Protection Cover: Ensure Your Policies Still Fit Your Needs
Life insurance, income protection, critical illness cover, and business protection should reflect your current circumstances.
Life events such as marriage, children, or changes in employment may require updates.
10. Strategic Planning: Avoid Last Minute Decisions
Tax year end allowances are tools, not targets. Acting purely to “use an allowance” may not align with your longer term objectives.
A structured review can help you understand your options without rushing into unsuitable decisions.
Frequently Asked Questions
1. When does the UK tax year end?
2. Can unused ISA allowance be carried forward?
3. Can pension allowance be carried forward?
4. Do these allowances guarantee tax savings?
Important Information
This article is for general information only and does not constitute personal financial advice or a recommendation to take any action. Tax treatment depends on individual circumstances and
may change. Investments can fall as well as rise in value, and you may not get back the amount invested. Past performance is not a reliable indicator of future results.
If you are unsure about how any of these allowances apply to you, consider speaking with a regulated financial adviser.
