As we approach the end of the tax year, it’s a good time to pause and review a few areas of your finances.

Year-end planning doesn’t have to be complicated. In most cases, it’s simply about making sure you’ve made good use of the allowances and reliefs available before the tax year resets on 5 April.

A short review now can often highlight opportunities that disappear once the new tax year begins.

Here are a few areas that are worth checking.

Make the Most of Your ISA Allowance

Each adult has an ISA allowance of £20,000 per tax year.

Any interest, dividends, or investment growth inside an ISA is free from income tax and capital gains tax. Over time this can make a significant difference to long-term savings.

The allowance cannot be carried forward. If you don’t use it before the end of the tax year, it’s lost.

For many people, this remains one of the simplest ways to build tax-efficient savings.

Pension Contributions Can Still Reduce Your Tax Bill

Pension contributions continue to be one of the most effective tax planning tools available.

Personal contributions receive tax relief at your highest marginal rate, meaning the real cost of contributing can be much lower than the headline figure.

For higher earners, pension contributions can also help reduce exposure to certain tax traps, particularly where income exceeds £100,000, which begins to reduce the personal allowance.

If you are considering increasing pension contributions, it’s worth reviewing the annual allowance and any unused allowances from previous years that may be carried forward.

Don’t Forget the Capital Gains Tax Allowance

The Capital Gains Tax annual exemption is currently £3,000.

If you have investments or assets that have increased in value, selling part of those holdings before the end of the tax year may allow you to use the allowance and reduce future tax exposure.

In some cases, couples may also benefit from transferring assets between spouses so that both allowances can be used.

Dividend Allowance Is Now Much Smaller

If you receive dividends from investments or your own company, the dividend allowance is now only £500.

This is significantly lower than it was in previous years, which means more dividend income may now be subject to tax.

For company directors in particular, reviewing the balance between salary, dividends, and pension contributions can often help ensure the overall position remains tax efficient.

Review Your Income Position

Because many tax thresholds remain frozen, more people are gradually moving into higher tax bands.

This is often referred to as fiscal drag.

Even modest income growth can lead to higher effective tax rates over time. Taking a moment to review income sources, pension contributions, and allowances before the end of the tax year can help ensure you are using the available reliefs effectively.

Final Thought

Year-end tax planning doesn’t usually involve complex strategies. Most of the time, it’s simply about making sure the basics haven’t been missed.

A short review before 5 April can often highlight small adjustments that make a noticeable difference.

Sometimes the biggest benefit is simply having clarity on where you stand before the new tax year begins.

Want the Full Year-End Tax Guide?

This article highlights a few of the key areas worth reviewing before the tax year ends, but the full Year-End Tax Guide 2025–26 goes into much more detail.

The guide covers:

• Income tax thresholds and allowances

• Dividend and capital gains tax planning

• Pension contribution opportunities

• Savings allowances and ISAs

• Planning ideas for business owners and directors

• Key tax changes to be aware of going into the next tax year

If you’d like a clearer picture of what might apply to you, you can download the full guide below.

And if reading through it raises questions about your own situation, feel free to get in touch. A short conversation can often help bring clarity to what might otherwise feel complicated.