Don’t Miss Out: Maximise Your Tax-Efficient Opportunities Before the Tax Year End

The end of the tax year is fast approaching on 5 April, and now is the perfect time to review your finances to ensure you’ve made the most of tax-efficient opportunities.

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ISAs

ISAs remain one of the most effective ways to grow your money, as they are free from Income Tax and Capital Gains Tax. For the 2025/26 tax year, the ISA allowance remains £20,000 per person, whether in a Cash ISA or an Investment ISA. The same allowance will apply in 2026/27. Remember, allowances cannot be carried over — any unused allowance is lost.

Between spouses, tax-free ISA savings can be transferred, helping both partners make the most of their individual allowances and potentially shelter up to £40,000 collectively. ISAs can be funded with a lump sum or regular monthly contributions, depending on what suits you best.

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Pensions

Your pension contributions normally also benefit from tax relief. For the 2025/26 tax year, the standard annual allowance is up to £60,000, or 100% of an individual’s UK relevant earnings if lower. Lower allowances may apply for higher earners or individuals who have previously accessed their pension benefits. If you haven’t used your full allowance, you may be able to carry forward unused allowances from the previous three tax years to make additional contributions. Maximising pension contributions before 5 April can reduce your taxable income and boost your long-term savings.

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Capital Gains and Investments

The annual capital gains allowance is £3,000 for individuals in 2025/26. If you have investments that have grown in value, consider whether any disposals or losses could help offset gains before the tax year ends. Additionally, keep in mind dividend and savings allowances, which remain £500 for dividends and £1,000 (basic rate) / £500 (higher rate) for savings interest.

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Charitable Giving and Gifts

If you make charitable donations or gifts, these can have tax advantages. Donations made before 5 April may increase your tax efficiency, and you may also utilise the annual gift allowance of £3,000 per person to reduce potential inheritance tax liabilities.

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Next Steps

With the tax year ending soon, now is the time to act. Consider:

• Topping up your ISA or starting contributions

• Maximising pension contributions or using carry forward allowances

• Reviewing investments for gains, losses, and unused allowances

• Making charitable donations or gifts efficiently

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It’s important to note that although 5th April is the deadline, contributions and gifts take time to process. To ensure your ISA, pension, and charitable plans are completed in time, we recommend contacting your financial planner at least three weeks in advance.

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This newsletter is for general information purposes only and does not constitute personal financial advice. This communication is intended for UK retail customers only.  The information provided is based on current tax rules and legislation, which may change in the future. Individual circumstances vary, and you should seek professional advice before making any financial, investment, or tax decisions.

Issued by Chester Rose Financial Planning Limited. Authorised and regulated by the Financial Conduct Authority. FRN: 726620.