Connect Yorkshire Wealth Management partner, Rathbones, want to share some tips and advice ahead of the end of the financial year
Keep more, grow more. Every pound saved from tax today is a pound compounding tomorrow. Make sure you’re optimising your finances for tax purposes with our useful tips.
The start of a new year is the perfect time to reset your finances and plan ahead. Before your resolutions fade, remember this key milestone: the UK tax year ends on 5 April 2026. A pound saved in tax this year could be a pound of compounding towards your financial goals tomorrow.
What should you do before the UK tax year ends on 5 April 2026?
Here’s a practical checklist to maximise your tax efficiency:
Action
Use your ISA allowance (£20,000/adult, £9,000/child)
Review pension contributions (up to £60,000)
Make use of gifting allowances (£3,000/year)
Check for capital gains or dividend income outside wrappers
Review non-ISA/pension savings
Why it matters
Tax-free savings and investments; allowances cannot be carried forward
Maximise retirement savings; unused allowances may be carried forward for 3 years
Reduce inheritance tax liability; unused allowance can be carried forward 1 year
Avoid unnecessary tax on investments
Consider moving to tax-efficient accounts
How to use your ISA allowance before 5 April
Unused ISA allowances expire at the end of the tax year. To maximise tax-free growth in your savings and investments, use your allowance before 5 April:
Adult ISA allowance: £20,000 per tax year
Junior ISA allowance: £9,000 per child per tax year
Other ways to start the New Year well
Review pension contributions and unused allowances: The pension annual allowance for 2025/26 is £60,000. You may be able to carry forward unused allowances from the previous three tax years.
Make use of gifting allowances: Each tax year, you can give away £3,000 without it falling into your estate for inheritance tax purposes. If unused, this allowance can be carried forward for one year.
Review income, spending, and short-term planning: The new year is an ideal time to review your household finances and set a budget.
Set longer-term financial goals: Once you understand your day-to-day position, focus on longer-term goals such as retirement, saving for children, or major purchases. Adult ISA allowance: £20,000 per tax year
Why the New Year is a good time to act
The beginning of a new year is a natural point to reset your finances after an expensive holiday season, ensure you are using all your allowances, and plan ahead with clarity.
This information is based on our current understanding of HMRC tax rules in the UK. Tax treatment depends on your personal circumstances, which could change.
