6 things to do before the end of every financial tax year

ISAs remain one of the simplest and most effective ways to save or invest tax efficiently. You can put up to £20,000 each tax year into an ISA, and any growth or income is free from income tax and capital gains tax.

If you haven’t used your full allowance for 2025/26, it’s worth checking whether some of your savings could sit more comfortably inside an ISA. You’ll lose any unused ISA allowance once the tax year ends, so even a partial contribution can make a difference.

For younger savers considering their first step onto the property ladder, a Lifetime ISA (LISA) can provide a helpful boost.

If you’re aged 18 to 39, you can save up to £4,000 a year, and receive a 25% government bonus, worth up to £1,000 annually.

The money must be used to buy a first home costing £450,000 or less, or saved for retirement after age 60. Withdrawals for other reasons usually trigger a penalty.

It’s not right for everyone, but for those confident they’ll meet the conditions, a LISA can be a valuable way to build a deposit more quickly.

Giving money to family or loved ones can be rewarding in itself, but it can also be a good way to reduce a potential inheritance tax (IHT) bill.

You can gift £3,000 each tax year without it counting towards your estate for inheritance tax purposes. If you didn’t use up last year’s allowance you can carry it forward for one year, which means you can gift up to £6,000 before 5 April 2026.

There are also other allowances, including:

• Wedding or civil partnership gifts of up to £5,000 to your children and £2,500 to your grandchildren,
• Smaller gifts of up to £250 per person.

Larger gifts may still fall outside inheritance tax, if you live for seven years after making them.

Charitable giving is another area to consider. Gift Aid donations made before the end of the tax year can increase the value of charitable gifts and, in some cases, reduce a tax bill, particularly for higher-rate taxpayers.

Many parents and grandparents like to use annual allowances to help set children up for the future.

A Junior ISA (JISA) allows up to £9,000 per tax year to be saved of invested in a child’s name, with all the growth sheltered from tax.

The money is locked away until the child turns 18, when it becomes theirs to use, often for education, a first home, or other early adult milestones.

A pension remains one of the most tax-efficient ways to save for your retirement, and the end of the tax year can be a good point to review whether your contributions still feel right.

For 2025/26 you can usually contribute up to £60,000 (or 100% of earnings if lower), with tax relief added to your pension. This means if you’re a UK taxpayer, you’ll receive 20% tax relief as a basic-rate taxpayer, and up to 40% if you’re a higher-rate taxpayer.

In some cases, it might also be possible to carry forward unused pension allowances from the previous three tax years, depending on your earnings and pension arrangements.

If you’ve already accessed pension benefits, a lower £10,000 Money Purchase Annual Allowance (MPAA) may apply

If you haven’t maxed out your pension allowance yet, even a modest additional contribution before the tax year ends can increase your retirement savings while reducing the amount of tax you pay now.

If you’re thinking about selling investments or other assets, it’s worth bearing capital gains tax (CGT) in mind.

CGT applies to the profit you make when selling assets like a second home, jewellery, antiques, or stocks and shares that have increased in value.

Everyone has a £3,000 CGT exemption for 2025/26. Gains above this are taxed depending on your income tax band, and currently stand at 18% for basic-rate taxpayers and 24% for higher-rate taxpayers.

Unlike other allowances, such as gifting, you can’t carry forward any unused CGT allowance. In some cases, spreading the sale of valuable assets over multiple years can help ensure you’re not paying more tax than you need to.

Tax rules rarely stand still, and while allowances reset each year, wider changes are expected over the coming years. Taking time to review your position regularly can help you keep your plans aligned with your goals and the evolving tax landscape.

To find out more about the changes planned for the next tax year, take a few minutes to check out the Budget Updates.

If you’d like support reviewing your finances, an Amber River adviser can help you look at the bigger picture, from tax-efficient investing and retirement planning to estate planning and achieving long-term goals.

To speak to one of our team, arrange an appointment or find out more, call 0800 915 0000, or alternatively use our contact form here.