Author:
Jordan Gillies
Head of Business Development and Marketing,
Saltus Asset Management Team
Reviewed by: Megan Jenkins, Chartered Financial Planner, Saltus Asset Management Team
It’s that time again where a different type of new year begins. One that may not be marked by fireworks or a big ball dropping in Times Square, but one that is just as important (or at least we think so). The end of the tax year.
If you’re yet to do a final review of your finances, there’s no need to worry. We’ve put together a quick checklist to help make your tax year end run a little smoother. And if you’re looking for more tailored guidance, it’s always worth speaking to a financial adviser.
Important tax year end deadlines
As the deadline approaches, it’s worth checking whether you’ve made the most of the allowances available to you. Some can be carried forward, but many operate strictly on a ‘use it or lose it’ basis.
- Pension contributions: Most people can contribute up to £60,000 into their pension each tax year and receive tax relief, although high earners may be affected by the tapered annual allowance.[1] Unlike ISAs, unused pension allowance can be carried forward for up to three previous tax years, provided you have a pension in place for those years.
- Capital gains tax (CGT): The annual CGT exemption of £3,000 resets on 6 April.[2] If you are considering selling investments or other assets, reviewing your gains ahead of the deadline can help you manage your overall tax exposure.
- Dividend allowance: The dividend allowance remains at £500 for the 2025–26 tax year.[3] If you receive dividends from investments or a business, it may be worth checking whether your income exceeds the allowance and plan accordingly.
- Gifting: You can gift up to £3,000 each tax year without this forming part of your estate for inheritance tax purposes. This allowance can be carried forward for one year if unused.
Tax year end quick wins
As the 5 April 2026 looms closer, there are a few actions to consider to make the most of your tax year. Utilising your yearly ISA allowance of £20,000 may be more important than ever this year (depending on your goals and circumstances). From April 2027, the amount you can pay into a Cash ISA each year will be capped at £12,000 for under-65s. This only applies to new contributions from that date, anything already saved in a Cash ISA won’t be affected. Guidance on how the rule applies if you turn 65 mid‑year will be confirmed in 2026. There’s no change to the contribution limits for Stocks & Shares ISAs or Innovative Finance ISAs with both still allowing up to £20,000. The overall ISA allowance will remain £20,000, regardless of age, meaning you can still spread up to £20,000 across different ISA types each tax year.
If you have children, contributing to a Junior ISA can be a tax efficient way to build long term savings, with up to £9,000 available per child per tax year.[4] Another option to help support family members is through contributing to their pensions.
Reviewing your investments may help you realise capital losses, which can be used to offset gains either now or in the future. Charitable donations made under Gift Aid can also be beneficial for you, as they extend the basic rate tax band and can provide additional relief for higher and additional rate tax payers (read our article here for more information: To gift or not to gift? | Saltus).[5]
Finally, it may also be worthwhile checking any salary sacrifice arrangements in place. Adjustments made before end of the tax year can improve your overall tax position and may reduce National Insurance contributions.
Looking ahead
While there is still time to make some tax efficient decisions ahead of tax year end, it’s just as important not to rush into anything. Taking a moment to review your financial position, consider your options and seek advice where needed can help ensure any actions you take genuinely support your long term plans.
If you feel things have crept up on you this year, it may be helpful to mark 5 April 2027 in your diary now, so you have more time to prepare next time around. And if you’d prefer not to rely on reminders, working with a financial adviser can provide ongoing support, helping you stay organised and achieve your financial and retirement goals.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
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All authors have considerable industry expertise and specific knowledge on any given topic. All pieces are reviewed by an additional qualified financial specialist to ensure objectivity and accuracy to the best of our ability. All reviewer’s qualifications are from leading industry bodies. Where possible we use primary sources to support our work. These can include white papers, government sources and data, original reports and interviews or articles from other industry experts. We also reference research from other reputable financial planning and investment management firms where appropriate.