Spring is a great time to look ahead and consider new investments or pension contributions to utilise any unused allowances before the end of the current tax year on 5 April 2026. We’ve created a checklist to highlight tax planning opportunities that may be available if your budget allows, to help your money work harder for you.
Your ISA (Individual Savings Account) allowance is £20,000 for this tax year and next tax year. The Junior ISA allowance is £9,000 per child per tax year.
This means you can save up to £20,000 in a Cash ISA or Stocks & Shares ISA without paying any tax on interest, dividends or withdrawals.
ISAs are a tax-efficient way to save, so it’s worth making the most of this allowance where possible.
If you have a general savings account that isn’t an ISA, it may be worth reviewing and topping it up if you have spare funds.
- Basic rate taxpayers can earn up to £1,000 of interest tax-free each year.
- Higher rate taxpayers can earn up to £500 tax-free.
If you earn between £12,570 and £17,570, you may be eligible to receive up to £5,000 of savings interest tax-free. This often applies to individuals whose only income is the State Pension.
Pensions offer a tax-efficient way to save for your future; a pension fund grows tax-free and with the end of the tax year approaching it is a good time to make the most of the tax benefits they offer by either increasing your monthly pension contribution or making a one-off payment.
For most taxpayers, the maximum pension contribution is £60,000 each tax year. This limit covers contributions made by the individual and by their employer into their pension fund.
Pensions can also help reduce income, which can trigger other benefits — for example, reducing income below £60,000 may allow you to avoid the high-income child benefit charge.
Any unused allowance may be carried forward for three years. Importantly, any unused pension allowance for 2022/23 will lapse on 5 April 2026 if unused.
The deadline for paying voluntary National Insurance (NI) contributions is 5 April each year. You can usually pay voluntary contributions for the past six years.
To receive the full State Pension, you typically need 35 qualifying years of NI contributions. You can check your qualifying years by logging into your personal tax account to identify any gaps — now could be an ideal time to make these contributions up.
The annual Capital Gains Tax (CGT) exemption is £3,000 for the 2025/26 tax year.
CGT applies to the profit made when you sell or dispose of certain assets, such as shares or property (that is not your main residence), which have increased in value.
If you are considering selling assets, it may be worth reviewing whether using this year’s exemption before 5 April 2026 would be beneficial.
You have an inheritance tax-free annual gift allowance of £3,000 per tax year. You can give up to £3,000 to one person or split it between multiple people.
If you didn’t use last year’s exemption, you can carry it forward for one tax year only — after that, it will be lost.
If you are planning to make a gift, reviewing your available allowance before the end of the 2025/26 tax year could be worthwhile.
Lower-earning married couples or civil partners could save up to £252 per year through Marriage Allowance.
If one partner earns below the £12,570 personal allowance, they can transfer 10% of it to their spouse or civil partner, provided the recipient is a basic rate taxpayer.
Claims can be made via the government website and can be backdated for up to four years.
Here at Walter Dawson, our Wealth Management Team is on hand to help you review your financial position and ensure you’re making the most of available allowances.
For more information on our services, please get in touch with our team.
