Act early or you could miss out on tax year end!

Written by
Tom Lamb
Time to read
4 minutes, 9 seconds


The end of the 2022/23 tax year is fast approaching, and the time to act is now. Do more with your money today by making sure you’re fully taking advantage of the tax allowances available.

The tax year ends on April 5, just two short months away, and it may take time to sort through your affairs, speak to an adviser, or make investments. Those who act early also benefit from potentially being invested for longer. Waiting until the last minute may mean you miss out or have less time in the market.

Use your Pension allowance

For the majority of long term investors, retirement is the goal, and a Pension is the vehicle. Your Pension allowance in the current tax year is 100% of your salary or £40,000 – whichever is lower. You’ll typically get at least 20% tax relief on your money paid into a Pension. This is a tax efficient way to do more with your money, as the more of your Annual Allowance you use, the more tax relief you will receive.

If you are in a position to do so, use up this allowance. Your money then has the potential to grow in an investment, meaning you’ve benefited from tax savings as well as potential investment growth. That’s why it makes sense to use up allowances now rather than on the eve of tax year end, as your money has more time invested in the markets and potential growth opportunities.

Another reason you may want to think about investing in a Pension right now is due to the high rates of inflation. Cash left in the bank, or even in a Cash ISA, is potentially losing value in real terms. Investing for the long term in a Pension may offer a way to beat inflation, as your money has the potential to grow over many years when invested in an appropriate Portfolio.

The Pension allowance can be carried over, allowing you to use up any unused allowance from the three previous tax years, as long as you held a Pension in those years. Speak to a financial adviser if you need any assistance with investing your Pension allowances.

Your Pension allowance will start again on April 6 for the 2023/24 tax year, once again you’ll be able to invest 100% of your salary or £40,000 depending what is lower. You’ll benefit from at least 20% tax relief, and using this allowance up early in the new tax year will mean your money has more time to benefit from being invested.

Use your ISA allowance

The annual ISA allowance is £20,000 in the 2022/23 tax year, and it is a case of “use it or lose it” for this allowance. Don’t miss out, invest today.

You won’t pay Income or Capital Gains Tax on the growth you earn in an ISA, and over time you can compound this wealth to support a range of goals. An ISA may be more suitable for shorter to medium term goals such as school fees for your children.

Given the current high inflation levels, you may want to think carefully if you are invested in a Cash ISA. Low interest rates aren’t going to beat high inflation, so your money may be growing less than the price increases in shops.

A Stocks & Shares ISA over a five year plus period may offer returns that beat inflation, but this will depend of the performance of the Portfolio invested in.

Use this year’s allowance if you can, and start again with a fresh £20,000 allowance for the 2023/24 tax year from April 6. Using this allowance at the earliest opportunity may allow more time for investment growth.

Speak to your financial adviser

Using your allowances should be your priority, and if in doubt speak to a financial adviser today to make sure you are well prepared to do more with your money before April 5.

Your circumstances will be unique to you, and by going through your personal finances with an adviser there may be other ways you can benefit before tax year end.

If you can’t use your full allowance, invest what you can before April 5, and keep in mind that with impulseSave® in the True Potential app you can invest into an existing ISA right up until the end of tax year end.

If you need financial advice or would like to open an account yourself visit or call our dedicated team on 0191 625 0350.

With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. You should ensure your contribution does not result in your total ISA contributions within the tax year exceeding £20,000.  You should also ensure your contribution does not result in your total Pension contributions within the tax year exceeding £40,000. Tax rules can change at any time. ISA eligibility and tax rules apply. TPI Pension eligibility and tax rules apply. This blog is not personal recommendation or financial advice.


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Date last reviewed: January 17th, 2024