For most people it comes down to a few simple questions. Have you used your ISA allowance? Have you checked your pension contributions?
Every year around this time, I find myself having the same conversation with clients. It usually starts with something like, "I keep meaning to sort out my ISA" or "I think I've still got some pension allowance left from a couple of years ago." And every year, the same thing happens – April sneaks up faster than anyone expects.
The tax year ends on 5 April 2026. That's roughly six weeks from now. And while I'd never want to panic anyone into rushing decisions, there are some genuine use-it-or-lose-it deadlines coming up that are worth knowing about.
So here's a straightforward run-through of the main things to check before the clock runs out.
Do I still have ISA allowance to use?
You can put up to £20,000 into ISAs this tax year. That could be a Cash ISA, a Stocks and Shares ISA, or a mix of both – as long as the total doesn't go over the £20,000 limit. If you're a couple, that's potentially £40,000 between you.
The key thing is that unused allowance doesn't roll over. If you only use £12,000 this year, the remaining £8,000 is gone. You can't add it to next year's pot.
It's also worth knowing that from April 2027, the government is reducing the Cash ISA limit to £12,000 for anyone under 65. The full £20,000 will still be available, but at least £8,000 of it will need to go into a Stocks and Shares ISA. So if you've been thinking about building up your cash savings in an ISA, this year and next are worth making the most of.
Have I made the most of my pension allowance?
Pensions remain one of the most tax-efficient ways to save. The annual allowance is £60,000, or 100% of your earnings – whichever is lower. That's the maximum you can contribute and still receive tax relief.
But here's the bit that catches people out: if you haven't used your full allowance in the last three tax years, you may be able to carry it forward. That means some people have significantly more room than they realise. If you've been contributing modestly for a few years, it's worth checking.
And if your income sits between £100,000 and £125,140, pension contributions become even more valuable. In that band, you're effectively paying a 60% marginal rate of tax because your personal allowance is being tapered away. A well-timed pension contribution can bring your income back below £100,000, restore the full personal allowance, and save you a substantial amount.
What about capital gains tax?
Everyone gets a £3,000 annual exemption for capital gains – that's the amount of profit you can make from selling investments, a second property, or other assets without paying CGT. It's not a huge amount, and it's dropped significantly in recent years (it was £12,300 just a few years ago), but it's still worth using.
If you're sitting on investments outside an ISA or pension that have grown in value, it might make sense to sell enough to use this year's exemption and then reinvest. Your financial adviser can talk you through what's sometimes called "bed and ISA" – selling holdings outside your ISA, using the CGT allowance, and reinvesting the proceeds back inside the tax-free wrapper.
If you're married or in a civil partnership, you each get your own £3,000 allowance. That's £6,000 between you, and transferring assets between spouses is free of CGT – so there can be real planning value there.
Are dividend tax changes on my radar?
This one is easy to miss. From 6 April 2026, dividend tax rates are going up by 2 percentage points. The basic rate rises from 8.75% to 10.75%, and the higher rate from 33.75% to 35.75%.
If you run your own company and take dividends as part of your income, or you hold shares outside an ISA, this is worth thinking about. It won't affect dividends received inside ISAs or pensions – those remain tax-free. But for everything else, the cost is going up.
For business owners, it may be worth reviewing your salary and dividend mix for the new tax year. And for investors, it's another reason to make sure you're using your ISA allowance fully.
Is there anything else changing in April?
A few other things to be aware of as we head into the new tax year:
The state pension is going up by 4.8%, which takes the full new state pension to around £12,548 a year. The personal allowance and higher rate threshold remain frozen – they have been since 2021, and they're staying that way until at least 2028. That means more people are being pulled into higher tax bands simply through wage growth. It's what's sometimes called "fiscal drag," and it's one of those quiet changes that can have a real impact over time.
Business Asset Disposal Relief is also changing. The CGT rate on qualifying disposals rises from 14% to 18% in April. If you're planning to sell a business or business assets, that's a conversation to have sooner rather than later.
And from April, the rules around inheritance tax on business and agricultural property are tightening. The 100% relief that previously applied without limit is being capped, with only the first £1 million fully relieved and 50% relief on the excess. If you're a business owner or farmer, this is something to discuss with your adviser and your solicitor.
What should I actually do?
Honestly, for most people it comes down to a few simple questions. Have you used your ISA allowance? Have you checked your pension contributions? Are there any investments sitting outside a tax wrapper that could be moved inside one? And are you aware of the changes coming in April that might affect how you structure things going forward?
If the answer to any of those is "I'm not sure," that's exactly the right time to have a conversation. We're not talking about anything dramatic – just making sure you're not leaving money on the table.
If you'd like to go through your own position before the end of the tax year, get in touch. We're always happy to have a chat.
Please note that these are general considerations and not personal advice.
Daren Wallbank - Chartered Financial Planner, Ginkgo Financial
Inheritance Tax planning is not regulated by the Financial Conduct Authority.
The value of investments can go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future results.
Tax treatment depends on individual circumstances and may change in the future.
Approver Quilter Financial Services 24/02/26.
