As 5th April approaches, the window to make smart, tax‑efficient decisions begins to narrow.
Whether you’re looking to maximise allowances, reduce your tax bill, or simply get organised, a little planning now can make a meaningful difference.
This article will walk you through the key opportunities worth considering before the tax year resets, helping you make the most of the remaining few months with clarity and confidence.
Maximise your 2025-26 ISA allowance
Using your ISA allowances before the tax year ends is one of the simplest ways to keep more of your money working for you. ISAs shelter your savings and investments from Income Tax and Capital Gains Tax, helping your wealth grow without the drag of tax.
What’s protected inside an ISA
- Interest earned on cash
- Investment gains within the ISA
Your annual ISA limits
Each tax year, you can contribute up to £20,000 across the ISA family – whether you place it all in one account or spread it across different types.
If you’re eligible for a Lifetime ISA, you can currently add up to £4,000 of that allowance into a LISA, as long as your total ISA contributions stay within the £20,000 limit. The first payment must be made before age 40 and when you turn 50, you will not be able to pay into your Lifetime ISA or earn the 25% bonus from contributions.
Use it or lose it
ISA allowances don’t roll over. Anything unused by 5th April disappears when the new tax year begins. The UK tax year runs from 6th April to 5th April every year, so reviewing your ISA position before the deadline can make a meaningful difference.
You can access your ISA by logging into your True Potential account online or via the app. You can top up from as little as £1 up to your full remaining allowance by using impulseSave®.
Pension contributions and annual allowances
Pensions remain one of the most effective ways to build long‑term wealth, with the added advantage of tax relief on contributions. The earlier you contribute, the longer your money has the potential to grow.
How much you can contribute
Your annual pension allowance is linked to your income. In most cases, you can receive tax relief on contributions up to the lower of your UK relevant earnings or £60,000. Those with little or no earnings can still contribute £3,600 gross each year.
This overall limit includes both your own contributions and any made by your employer. It may be reduced if you have flexibly taken taxable income from your pension (known as the money purchase annual allowance) or you earn over £200,000 (known as the tapered annual allowance).
Eligibility for tax relief
Tax relief is only available if you meet the relevant eligibility criteria, so it’s important to check your position before contributing.
Using carry forward
If you haven’t used your full annual allowance in the previous three tax years, you may be able to carry forward those unused amounts to boost your contributions this year. When doing this, make sure you’re calculating unused annual allowance, not unused tax relief, and that you meet the rules for carry forward. Importantly, you must still have the right amount of earnings to be able to maximise your carry forward allowance. If you’re unsure speak to your financial adviser.
Accessing your pension
While pensions offer valuable tax advantages, they are designed for long‑term saving. Funds generally can’t be accessed until age 55 – rising to 57 from April 2028.
The level of Pension income could also change due to investment/fund performance. Pension funds are still subject to market risks – while diversified – and economic downturns can affect the value of a fund.
If you have any questions or want to talk over your options, please contact your financial adviser for help. You can also get free and impartial information from MoneyHelper.
You can access your personal pension by logging into your account online or via the app. Simply tap the impulseSave® button and top up your investment.
Capital Gains Tax planning
With the annual Capital Gains Tax (CGT) exempt amount now much lower than in previous years, taking a moment to review your investments before 5th April can potentially make a real difference. A few well‑timed actions can help you use the allowances still available and avoid paying more tax than necessary.
Making use of your annual exempt amount
Each tax year you can realise gains up to the CGT allowance without paying tax. Because this allowance can’t be carried forward, it’s often worth considering whether to realise some gains before the deadline – particularly if you’ve built up profits on investments you’re comfortable trimming or rebalancing.
Dividend and savings allowances
With the dividend allowance having been reduced significantly in recent years, it’s worth reviewing how your investments and savings are structured to avoid unexpected tax charges.
The dividend allowance for the 2025/26 tax year is £500, meaning only a small portion of dividend income can now be received tax‑free. Anything above this amount may be taxable depending on your income tax band, unless the dividends sit within your personal allowance or are held inside an ISA. This makes it increasingly important to consider where your investments are held and whether you’re making full use of tax‑efficient wrappers.
Taking time to review how your income is split between salary, dividends, and interest can help you use these allowances efficiently. A little planning before the tax year end can ensure you’re not paying more tax than necessary and that your savings and investments are working as effectively as possible.
Gifting & Inheritance Tax planning
Thoughtful gifting can be a powerful way to support loved ones while also reducing the potential size of your estate for Inheritance Tax (IHT) purposes. With a number of allowances available each tax year, reviewing your options before the tax year end can help ensure you’re making the most of what’s permitted.
Everyone has an annual £3,000 gifting allowance, which can be given to one person or split between several recipients. Small gifts of up to £250 per person can also be made to multiple individuals each year, provided they haven’t already benefited from your £3,000 allowance.
Larger gifts may also fall outside your estate, provided you survive seven years from the date the gift is made. These are known as Potentially Exempt Transfers, (PETs). While they can be a useful part of long‑term planning, it’s important to keep clear records and understand how taper relief may apply if you pass away within the seven‑year period.
Gifting into trusts can be complex and may be Chargeable Lifetime Transfers (CLTs) which can carry with them immediate tax charges. If you’re unsure about a gift you are going to make please speak to your financial adviser.
Business owners and directors
For business owners and directors, building up to the tax year end is a good opportunity to check that your mix of salary, dividends and pension contributions are still working efficiently. With the dividend allowance now just £500, more of your dividend income may be taxable, so reviewing the timing and structure of withdrawals can help keep your overall position balanced.
Pension contributions remain one of the most effective ways to move profits into your personal planning, as employer payments are usually deductible for corporation tax (provided they meet the wholly and exclusively rule) and support long‑term planning. It’s also worth checking any expenses, benefits or director’s loan account balances before year end to avoid unnecessary charges and keep your records tidy.
A quick review now can help ensure your business and personal finances are aligned and that you’re making the most of the allowances available.
Looking ahead with confidence
As the tax year end approaches, even small steps can make a meaningful difference. Reviewing your allowances, tidying up investments, considering strategic gifts, and checking how your income is structured all help ensure your finances are working as efficiently as possible.
Speaking with a qualified adviser can also help you make confident, well‑informed decisions. Personal guidance ensures your planning reflects your goals, circumstances and the opportunities available to you.
With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. This material is not a personal recommendation or financial advice and the investments referred to may not be suitable for all investors.
Tax is subject to an individual’s personal circumstances and tax rules can change at any time. The Financial Conduct Authority does not regulate Will Writing, Tax Advice, or Estate Planning.
ISA eligibility and tax rules apply.
You should ensure your contribution does not result in your total ISA contribution within the tax year exceeding £20,000.
Pension eligibility and tax rules apply.
You should ensure your contribution does not result in your total Pension contribution within the tax year exceeding £60,000 or 100% of your earnings, whichever is lower.
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True Potential Investments LLP is authorised and regulated by the Financial Conduct Authority. FRN 527444. Registered in England and Wales as a Limited Liability Partnership No. OC356027.
True Potential LLP is registered in England and Wales as a Limited Liability Partnership No. OC380771.
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