A new tax year means new tax allowances. Maximising your annual allowances at the start of the tax year – rather than at the end – can give your savings and investments more time to grow. Each pound you save in tax is a pound you can allocate to your savings and investments, which can in turn compound to build your wealth.
Article last updated 7 April 2026.
The start of a new year is the perfect time to reset your finances and plan ahead. Before your resolutions fade, remember this key milestone: the UK tax year ends on 5 April 2027. A pound saved in tax this year could be a pound of compounding towards your financial goals tomorrow.
UK Tax Year Checklist 2027
What should you do before the UK tax year ends on 5 April 2027?
Here’s a practical checklist to maximise your tax efficiency:
Action
- Use your ISA allowance (£20,000/adult, £9,000/child)
- Review pension contributions (up to £60,000)
- Make use of gifting allowances (£3,000/year)
- Check for capital gains or dividend income outside wrappers
- Review non-ISA/pension savings
Why it matters
- Tax-free savings and investments; allowances cannot be carried forward
- Maximise retirement savings; unused allowances may be carried forward for 3 years
- Reduce inheritance tax liability; unused allowance can be carried forward 1 year
- Avoid unnecessary tax on investments
- Consider moving to tax-efficient accounts
How to use your ISA allowance before 5 April
Unused ISA allowances expire at the end of the tax year. To maximise tax-free growth in your savings and investments, use your allowance before 5 April:
- Adult ISA allowance: £20,000 per tax year
- Junior ISA allowance: £9,000 per child per tax year
Other ways to start the New Year well
- Review pension contributions and unused allowances: The pension annual allowance for 2026/27 is £60,000. You may be able to carry forward unused allowances from the previous three tax years.
- Make use of gifting allowances: Each tax year, you can give away £3,000 without it falling into your estate for inheritance tax purposes. If unused, this allowance can be carried forward for one year.
- Review income, spending, and short-term planning: The new year is an ideal time to review your household finances and set a budget.
- Set longer-term financial goals: Once you understand your day-to-day position, focus on longer-term goals such as retirement, saving for children, or major purchases. Adult ISA allowance: £20,000 per tax year
Why the New Year is a good time to act
The beginning of a new year is a natural point to reset your finances after an expensive holiday season, ensure you are using all your allowances, and plan ahead with clarity.
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.
