With the end of the 2025/26 tax year fast approaching, now is the ideal time to review your finances and ensure you’re making the most of the allowances and reliefs available to you.

Year-end tax planning isn’t about last-minute panic, it’s about being proactive and making informed decisions before 5th April.

Here are some key areas to consider:

1. Make the Most of Your Personal Allowance

Every individual is entitled to a Personal Allowance (£12,570 for most taxpayers). If your income is close to this threshold, it may be worth reviewing whether you can make use of any unused allowance within your household (for example, through the Marriage Allowance where applicable).

2. Review Your Pension Contributions

Pension contributions remain one of the most tax-efficient ways to reduce your taxable income.

• Contributions receive tax relief.
• Higher and additional rate taxpayers may be able to claim additional relief.
• You can usually carry forward unused annual allowance from the previous three tax years (subject to conditions).
  

If your income has been higher than usual this year, increasing pension contributions before 5th April could be particularly beneficial.

3. Use Your ISA Allowance

The Capital Gains Tax (CGT) annual exemption has reduced significantly in recent years. If you’re planning to dispose of assets, careful timing can help minimise your liability.

You may wish to:

• Utilise your annual exemption before 5th April
• Transfer assets between spouses to maximise allowances
• Consider losses that could be offset against gains

5. Dividends and Salary Planning (For Company Directors)

If you operate through a limited company, this is a good time to review your salary and dividend strategy to ensure it remains tax efficient.

With changes to dividend allowances in recent years, proactive planning is more important than ever.

6. Review Business Expenses and Reliefs

Before year end, ensure:

• All allowable expenses have been recorded
• Any capital expenditure is reviewed for potential relief (e.g., Annual Investment Allowance)
• You are claiming all eligible reliefs

Leaving this until after the tax year ends can mean missed opportunities.

Don’t Leave It Too Late

Effective tax planning needs to happen before 5th April, once the tax year closes, many opportunities are lost.

If you’re unsure whether you’re making the most of available allowances, now is the time to seek professional advice. A short review now could lead to significant tax savings later.