Tax Year End Planning 2025/26: A Practical Checklist
There are two dates we should all have in our minds each year: 31 January (Self Assessment) and 5 April (the end of the tax year, when many key allowances reset).
And yet, for some reason, plenty of sensible people still leave decisions to the last minute.
With tax, that can lead to penalties. With investments, you won’t be fined for missing the deadline, but you can miss valuable allowances, and you can end up making rushed decisions you wouldn’t normally make. Planning ahead doesn’t just improve outcomes; it also reduces anxiety because you know what you’re working towards.
Below is a practical checklist you can use in the run-up to 5 April.
The “big 3” allowances to review first
ISA allowance (use it before it resets)
An ISA is a tax wrapper. Inside it, you can choose the approach that fits your plan, whether that’s cash for short-term needs or stocks & shares for longer-term goals.
A few key reminders:
The adult ISA allowance is £20,000.
The Junior ISA allowance is £9,000.
For a couple, using both adult allowances could mean up to £40,000 invested within ISAs in a single tax year (plus any Junior ISA contributions for children).
Importantly, you can’t carry unused ISA allowance forward. If you don’t use it by 5 April, it’s gone.
Planning tip: if you have money sitting in a taxable account, it may be worth gradually moving it into ISAs over time as part of a wider strategy.
Pension contributions
For many people, the full £60,000 annual allowance won’t be relevant, but pensions still remain one of the most powerful tools for tax-efficient planning, particularly when combined with:
tax relief on contributions (subject to rules), and
salary sacrifice (where available), which can improve overall efficiency for employees and employers.
If you’ve had years when you didn’t use your allowance, carry-forward may allow higher contributions (subject to eligibility and limits). This is an area where planning early matters, especially if income levels, bonuses, or business profits fluctuate.
Capital Gains planning
Capital Gains Tax is easy to ignore, until it isn’t.
Using your annual exempt amount can be valuable. One common planning approach is to sell down assets outside ISAs and then reinvest within an ISA (often referred to as “Bed & ISA” planning). Done properly, this can help:
use allowances efficiently,
manage gains and losses sensibly, and
reduce the chance of an avoidable CGT bill later.
The key is that this should sit within an overall plan, not a rushed, last-minute trade.
Family and household planning moves
It’s easy to think about tax planning in isolation. In reality, it often works best when you step back and look at the big picture of the household.
Consider:
Spousal planning: balancing ISAs and pensions between partners so both sets of allowances are used.
Gifting strategy: using annual gifting allowances and (where appropriate) regular gifts out of income as part of longer-term planning.
Junior accounts: Junior ISAs can be useful, and pensions for children can be a long-term idea for families who have already covered the essentials.
Higher earners and more complex situations
Some areas need more lead time. If you’re only a few weeks away from tax year-end, it may be too late to do this properly, but it’s never too late to plan for the next year.
Areas to watch include:
Tapered allowances / adjusted income
High Income Child Benefit Charge
Dividend planning for business owners
Salary vs dividends/employer pension contributions
Inheritance Tax planning (where it’s relevant): trusts, life cover, and gifting strategy
If any of the above apply, aim to treat tax year-end planning as a process, not a scramble.
Portfolio housekeeping
Tax year-end is a good moment for some calm “portfolio hygiene”:
Rebalance back to your agreed risk level
Check costs, cash drag, and concentration risk
Use wrappers intentionally (ISA, pension, and general account each have a role)
Keep records (gains, dividends, platform statements)
This is the unglamorous stuff, but it’s often where good outcomes come from.
A simple 7-day action plan
If you like structure, here’s a practical mini-timeline:
Day 1: list allowances used/not used; check income bands
Day 2–3: ISA top-ups; pension contribution check; employer options
Day 4–5: CGT review; Bed & ISA planning (if appropriate)
Day 6: gifting review; beneficiary nominations
Day 7: document what you did (and why), so next year is easier
What not to do in a rush
A few gentle warnings that can save you from regret:
Don’t invest purely for tax reasons
Don’t take more risk than you can live with
Don’t ignore liquidity needs and your emergency fund
Avoid complex schemes you don’t fully understand
A final thought
Many people want to manage their own finances, and we respect that. But if you want a second pair of eyes or a clear plan that ties everything together, we can help.
At Ifamax Wealth Management, we’ve been supporting clients for over 20 years. The business has now passed to the next generation, which means we’re building for the long term, and our job remains the same: to help you grow, protect, and pass on wealth in a way that’s tax-aware, not tax-obsessed.
Frequently Asked Questions
What is tax year-end planning?
Tax year-end planning involves reviewing which allowances and reliefs you can use before 5 April and ensuring actions align with your wider financial plan.
Is it better to use an ISA or a pension first?
It depends on your goals, time horizon, and access needs. ISAs offer flexibility; pensions can be highly tax-efficient for retirement planning. Many people use both, intentionally.
Can I carry forward unused pension allowance?
In many cases, yes, carry forward may allow higher contributions by using unused allowances from previous years, subject to conditions and limits.
How does Bed & ISA work?
“Bed & ISA” is moving investments held outside an ISA into an ISA (usually by selling and repurchasing within the wrapper), helping to shelter future growth from tax.
What should business owners review before the tax year-end?
Common areas include dividend strategy, employer pension contributions, salary vs dividend mix, and whether profits can be used more tax-efficiently, ideally planned well before the deadline.
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Important note
This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.
Article Written: March 2026, Tax Rates and Allowances May Change In The Future.