Before 5 April: end-of-tax-year planning

As the UK tax year ends on 5 April, many clients use this natural checkpoint to review their financial position. With the deadline quickly approaching, now is the final opportunity to make full use of the benefits available to you. It’s also a timely moment to ensure your wealth is structured efficiently and aligned with your long-term objectives.

Many allowances cannot be carried forward meaning that once the window closes, the opportunity is lost for good. Acting before 5 April can therefore help reduce avoidable tax, strengthen intergenerational planning and position your portfolio strategically for the year ahead.

Making use of ISA allowances before end of tax year

ISAs remain one of the most straightforward and effective tax-efficient wrappers available. For the current tax year, you can invest up to £20,000, with all growth and income sheltered from UK income and capital gains tax (CGT). Families can also use Junior ISAs, which allow up to £9,000 per child to be invested tax-efficiently.

Unused ISA allowances expire on 5 April 2026 – they don’t roll over. Even if your long-term strategy involves gradually deploying capital, funding your ISA before the deadline preserves flexibility for the future.

If you hold a flexible ISA, you can also replace any money you’ve withdrawn during the tax year without it affecting your annual allowance.

Looking further ahead, cash ISA limits for adults under 65 will fall to £12,000 from April 2027, reinforcing the value of using the current framework while available. If you have surplus cash, investing efficiently can help counteract inflation, particularly at a time when interest rates are expected to be cut further and remain low.

Reviewing pension contributions

Pensions continue to play a central role in long-term wealth accumulation. The annual allowance currently stands at up to £60,000, or 100% of relevant UK earnings if lower, with the ability to carry forward unused allowances from the previous three tax years. For higher earners, it’s important to consider whether the tapered annual allowance applies.

Making pension contributions before the tax year-end not only offers tax relief but also plays a key role in intergenerational wealth planning. From 6 April 2027, pensions will form part of the individual’s estate for inheritance tax (IHT) purposes, unless left to a spouse or charity. Reviewing contributions now and considering spousal strategies can therefore protect wealth for future generations.

CGT, dividends, and spousal planning 

The CGT annual exemption remains at £3,000 per individual, while the dividend allowance is £500 (tax is paid on anything over this amount unless in an ISA). Both reset on 6 April 2026. With allowances having reduced over recent years, proactive planning has become increasingly important.

For couples, transfers of assets between spouses or civil partners are generally exempt from CGT, allowing you to make full use of both sets of allowances before realising gains.

Structuring portfolios to manage dividend income efficiently between partners can also help reduce overall tax exposure. A coordinated review of asset ownership across a household can help improve tax efficiency and preserve capital.

IHT planning and gifting opportunities

End-of-year planning is also a sensible moment to consider your IHT strategy. The annual gifting exemption allows £3,000 per individual each tax year, with the ability to carry forward one unused year. Small gifts of £250 per recipient are also permitted under separate rules.

Used consistently, these exemptions can gradually reduce the value of a taxable estate over time. More broadly, reviewing trust structures, beneficiary nominations and estate documentation ensures your intentions remain clear and aligned with your family’s needs.

Ensuring surplus cash is working efficiently

Holding cash can provide comfort and flexibility, but when inflation outpaces savings rates, purchasing power erodes. Reviewing whether surplus cash remains appropriately positioned is prudent. This does not necessarily mean taking on additional risk but ensuring that your liquidity needs are met while excess capital is deployed in line with your broader investment strategy and long-term objectives.

A broader financial review

The end of the tax year also offers a chance to revisit key documentation and planning foundations. This might include reviewing your Will, Powers of Attorney, pension beneficiary nominations and any trust arrangements. Changes in personal circumstances - such as a business sale, inheritance, marriage, divorce, or retirement - may warrant adjustments to ensure your plan remains fit for purpose.

Financial planning is rarely about a single allowance or transaction. It is about making sure that every component of your wealth - pensions, ISAs, investments and estate structures - works cohesively, supporting your lifestyle today while safeguarding future generations.

Looking ahead with confidence

End-of-tax-year planning does not need to be reactive or rushed, but there’s limited time to act once 5 April passes, unused allowances for this year are permanently lost. A considered review before then can provide clarity, reduce avoidable tax and reinforce the foundations of your long-term financial strategy .