The current tax year ends on 5 April 2026, meaning now could be a good opportunity to review your wealth plan and check if you’ve made the most of all your tax allowances and that you’re prepared for the tax changes ahead.

Here are some considerations to be aware of before this tax year draws to an end.

Income tax thresholds are frozen until April 2031. So, with the thresholds staying the same while individual incomes potentially rise, any additional income will likely be subject to your regular income tax rate or may even be subject to a higher rate in the next tax bracket.

Additionally, the tax on dividends from investments outside of an ISA for basic rate and higher rate taxpayers will rise by two-percentage points from 6 April 2026, up to 10.75% and 35.75%, respectively. 

Reviewing where your wealth is stored and identifying any remaining allowances you have left before the tax year ends could be beneficial for future growth. If neglected, you may be missing out on tax-efficient savings or investing.

ISAs

The annual ISA allowance for the 2025/26 tax year is £20,000, which can be split across different ISA types.

If you haven’t yet used your full £20,000 allowance you can still contribute to a Cash ISA (flexible) and earn regular interest on your deposited cash; or invest with a Stocks and shares ISA for your money to have the opportunity to grow over the long term.

Any interest or returns made in an ISA are free from UK income and capital gains tax. And remember, the rise in dividend tax from 6 April won’t affect any investments held in a stocks and shares ISAs.

You have until 5pm on 2 April 2026 to contribute to a Cash ISA or Stocks and Shares ISA with us within the 2025/26 tax year.

Junior ISAs 

The Junior ISA allowance for the 2025/26 tax year is £9,000.

You can invest in a child’s future, providing them with a pot of money for them to access once they turn 18. Similarly to a regular ISA, any returns made are free from UK income and capital gains tax.

You have until 8pm on 2 April 2026 to contribute to a Junior ISA with us within the 2025/26 tax year.

The value of investments, and the income from them, can fall as well as rise and you may not get back what you put in. You should continue to hold cash for your short-term needs. This article should not be taken as advice

Pensions

The annual pension contribution limit is set at £60,000, although this can vary depending on your earnings and financial circumstances.

If you want to make the most of your pension allowance, consider topping up your workplace pension or private pension.

You have until 8pm on 30 April 2026 to contribute to a personal pension with us within the 2025/26 tax year.

Eligibility criteria, fees may apply. You should continue to hold cash for your short-term needs. Your capital is at risk.

For pensions you must be over the age of 18 and under the age of 75 and be a UK resident for tax purposes. You cannot access your pension benefits before the age of 55, which will rise to 57 in 2028. When transferring any existing pensions, exit fees may apply.

Preserving family wealth across generations is a central consideration for many families. With inheritance tax (IHT) charged at up to 40% on estates above the £325,000 nil‑rate band, even well‑structured estates can face significant tax. A simple strategy that takes this into consideration is making use of your £3,000 gifting allowance.

If you have not yet used your allowance for the current tax year, you can make a gift before 5 April 2026, and then again once the new tax year begins. Additionally, you can carry forward any unused allowance from the previous tax year, enabling a potential gift of up to £6,000 in one year. Importantly, gifts using this exemption fall immediately outside your estate for IHT purposes, even if you were to pass away within seven years.

For families wishing to pass on wealth with greater flexibility, it is worth remembering that the recipient assumes full ownership and control of the funds once the gift is made. So, before taking action, it may also be a good idea to review your will and assess how much of your estate may be subject to IHT.

Certain life events also present opportunities for additional tax‑free gifting without impacting your other gifting allowance. Weddings and civil partnerships allow you to gift:

• £5,000 to a child
• £2,500 to a grandchild or great‑grandchild
• £1,000 to any other individual.

If you’d like to discuss your personal tax allowances in more detail or have questions regarding application dates and cut-off times to qualify for the 2025/26 tax year, you can speak to one of our advisers through Premier 24 or book a free financial planning consultation.

We're here to help, but please be aware that we cannot offer any tax advice. We recommend you contact an independent tax adviser to discuss your personal tax situation.

Tax reliefs referred to are those applying under current legislation which may change. The availability and value of any tax reliefs will depend on your individual circumstances.