How to maximise your allowances before the end of the UK tax year

With the end of the tax year on 5 April 2026 approaching, now is the perfect time to review your finances. Acting early can help you use tax allowances efficiently and stay on track for your goals.

One of the most important things you can do is make sure you’ve used the relevant annual allowances for you and your family. You can’t carry most of these over to next tax year, so you’ll lose these benefits if you don’t take full advantage.

We’ve put together this checklist to help you see if you’ve used the allowances available. We understand tax planning can feel complex — our experts are here to help.

This information is based on our current understanding of HMRC tax rules in the UK. Tax treatment depends on your personal circumstances, which could change.  

 

Maximise your ISA allowance

Individual Savings Accounts (ISAs) are one of the most flexible ways to save and invest tax efficiently. They can also provide tax-efficient income in retirement.

Key ISA points:

• £20,000 annual ISA allowance - this is across all of your ISA accounts.
• £9,000 Junior ISA allowance  
• ISAs are free of income tax and capital gains tax. This is useful at a time when other allowances such as Dividend Allowance (£500) and CGT Allowance (£3,000) are at their lowest.

 

Boost your pension contributions

Pensions are a type of tax-efficient tool you can use to save for retirement. Whether you’re saving for the future or trying to cut your tax bill before the end of the tax year, pension contributions can help lower your taxable income and let your investments grow without being taxed along the way. Rules can be complex and can change, so it’s always a good idea to seek professional financial advice.

All taxpayers automatically get 20% tax relief on money they contribute to their pension. If you’re a higher or additional rate taxpayer you can get up to 40% or 45% relief respectively, but you will need to claim the extra tax relief above the basic rate via your annual tax return.

A Junior Self-Invested Personal Pension (SIPP) is an effective way to give a child a significant head start and make a real difference to their future. You can pay in up to £3,600 each tax year for the child’s future. Grandparents can also make contributions within the limits.

Pension key facts:

• Annual allowance: up to £60,000 (subject to earnings and taper)
• Carry forward unused allowance from previous three years
• Access age is currently 55, rising to 57 from April 2028
• Higher/additional rate taxpayers can claim extra relief through Self Assessment
• Junior pensions: up to £3,600 gross per child

 

Avoid the 60% 'tax trap'

If you earn £100,000 or more, your personal tax-free allowance of £12,570 is reduced by £1 for every £2 you earn over £100,000 which means you could be taxed at a rate of 60% on income between £100,000 and £125,140. One way to avoid this is to pay earnings above the £100,000 (subject to your annual allowance) into your pension.

 

Claim tax relief on charitable donations

When you make a donation to charity under Gift Aid, your donation is treated as having been made net of basic‑rate tax (20%). The charity claims that basic-rate tax back from HMRC, increasing the value of your donation at no extra cost to you. If you pay higher-rate (40%) or additional-rate (45%) tax, you are entitled to extra tax relief on the difference between your marginal rate and the basic rate. Your donation is “grossed up” therefore treated as if it was made before tax. For a basic-rate taxpayer an £80 donation is treated as a £100 gross donation. As a higher or additional rate taxpayer, you can claim back 20% or 25% of the gross donation respectively. Remember to keep hold of all records of your donations.

 

Review your capital gains tax (CGT) position 

It’s important to consider CGT because exemptions and thresholds can make a substantial difference. CGT allowances are now historically low, making proactive planning more important than ever.

Key CGT allowances for 2025/26:

• Annual exempt amount: £3,000 for individuals;
• £1,500 for most trustees

Ways to reduce CGT exposure:

• Transfer assets between spouses/civil partners to use both exemptions
• Hold investments within ISAs, pensions, or other tax‑efficient wrappers – this will shelter gains and dividends
• Sell your investments strategically before tax year end (also known as crystallising your gains)
• Review and manage gains regularly each year

 

Consider tax-advantaged venture schemes

Investing in a qualifying Venture Capital Trust (VCT) or Enterprise Investment Scheme (EIS) can provide significant tax benefits but carries higher risk. They can be an attractive option to those who have already maximised their other allowances for the tax year and are earning a significant salary which takes them into the higher or additional rate tax band.  

You can invest up to £200,000 per tax year in VCTs, with a maximum investment of £2mn if the excess over £1mn is invested in knowledge intensive companies (KIC). EIS have an investment limit of £1mn per tax year, but as with VCTs, this limit may be increased to £2mn if the excess over £1mn is invested in KIC.

It’s important to remember that these are high-risk investments, and you could lose all the money invested in them. There are also various rules, so it’s best to speak to a qualified financial adviser to ensure you’re fully benefitting from all the tax reliefs available to you.  

Potential tax benefits:

• VCT/EIS: up to 30% income tax relief, reduced to 20% from April 2026 (subject to eligibility criteria)
• SEIS: up to 50% income tax relief (subject to eligibility criteria)

 

Make use of gifting allowances

Gifting can be a valuable part of both tax‑year‑end planning and long‑term estate planning.

Key allowances:

• £3,000 annual gifting allowance
• Can be carried forward one year if unused

 

Run a full year‑end financial check

Before 5 April 2026, consider:

• Making sure you’re using your full ISA allowance
• Reviewing non‑ISA and non‑pension savings
• Checking for dividends or gains sitting outside tax‑efficient wrappers
• Using premium bonds or cash ISAs for funds that are currently subject to tax on interest  
• Revisiting your budget and short‑term financial goals 
   

Ready to review your allowances?

Tax planning can feel overwhelming, but early action puts you in control. By reviewing your allowances ahead of the tax year end and taking advantage of the reliefs available, you can reduce your tax bill and give your investments more room to grow.

If you’d like tailored guidance, speak to your Rathbones contact or fill out our form – we’re here to help you make confident, tax‑efficient decisions.