Article by Clémence Chatelin, Chartered Financial Planner

As the end of the tax year approaches (5th April), it’s time to take a proactive approach to managing your finances and simplify your tax year. With the ever-changing landscape of tax regulations, it’s crucial to stay informed and plan ahead to optimise your financial position.

In this article, we’ll explore seven simple and effective strategies to help you make the most of your tax allowances before the end of this tax year and prepare for the year ahead.

• Use Your Capital Gains Tax (CGT) Allowance

The annual CGT exemption remains £3,000 for 2025/26 and is expected to remain at this level into 2026/27 unless amended in a future Budget.

Given the reductions to this allowance in recent years, it is sensible to review your investment portfolio and consider whether realising gains within the exemption would be appropriate. Coordinating disposals across tax years and between spouses can help ensure available allowances are fully utilised.

• Maximise Your ISA Allowance

The ISA allowance remains £20,000 for 2025/26 and is expected to stay at this level into 2026/27.

From 6 April 2027, the maximum that may be allocated to a Cash ISA is scheduled to reduce to £12,000 for the under 65s. Investors who typically contribute the full £20,000 to Cash ISAs may therefore wish to consider how they structure future subscriptions.

With the dividend allowance at £500 and the CGT exemption at £3,000, ISAs continue to provide valuable tax efficiency. Investments held within an ISA grow free from income tax and capital gains tax. As ISA allowances do not carry forward, making full use of them each year can be beneficial.

• Review Pension Contributions

The Pension Annual Allowance remains £60,000 for 2025/26. While the Lifetime Allowance has been abolished, tax free lump sum limits, contribution limits and the tapered annual allowance for higher earners still apply.

With the Personal Allowance at £12,570 and the higher-rate threshold at £50,270 remaining unchanged, pension contributions can form an effective part of overall financial planning. They may reduce taxable income, preserve entitlement to certain allowances (especially for higher and additional rate tax payers) and support long-term retirement objectives.

• Consider Marriage Allowance

Marriage Allowance allows a non-taxpaying spouse or civil partner to transfer £1,260 of unused Personal Allowance to a basic rate taxpayer partner.

This can reduce the recipient’s tax liability by up to £252 per year. Claims may also be backdated for up to four tax years where eligibility existed but the allowance was not claimed.

• Make Use of Gift Aid

Donations made under Gift Aid enable charities to reclaim basic rate tax, increasing the value of your contribution. Higher and additional rate taxpayers may also claim further relief through their tax return.

For those who regularly support charitable causes, Gift Aid remains a straightforward and efficient mechanism to both support causes you care about and reduce your tax bill.

• Contribute to Junior ISAs

The Junior ISA allowance remains £9,000 for 2025/26. Funds grow free from income tax and capital gains tax and can provide a meaningful financial foundation for a child’s future.

For grandparents, contributions may also complement longer-term estate planning when structured appropriately.

• Review Inheritance Tax (IHT) Gifting

The IHT Nil-Rate Band remains £325,000 and the Residence Nil-Rate Band £175,000, with both currently frozen until at least April 2031.

Available exemptions include the £3,000 annual gifting allowance (with one-year carry forward), wedding gifts within prescribed limits and small gifts of up to £250 per recipient.

From 6 April 2027, defined contribution pensions are scheduled to form part of an individual’s estate for IHT purposes. This represents a significant development and may increase the relevance of lifetime planning and clear documentation of gifts, particularly gifts made out of surplus income.

Looking Ahead to 2026/27

Although many headline allowances remain unchanged, periodic review remains important to ensure your arrangements reflect both current legislation and your wider financial objectives. Adjustments to income, investments or family circumstances can all influence how effectively allowances are used.

A structured annual review provides clarity and confidence as legislation evolves.

How Ovation Can Help

The end of the tax year provides an opportunity to review your position and ensure that available allowances and reliefs are being used appropriately.

At Ovation Finance, we work with clients to integrate tax planning within a broader financial strategy, ensuring decisions remain aligned with long-term goals.

If you would like to review your position before 5 April;

• 📞  Call us on 0117 942 4333
• or fill out  fill out our online form  to get started.

Simplify your tax year and set yourself up for financial success in the year ahead.

Key Figures for 2025/26 and 2026/27

• Capital Gains Tax annual exemption: £3,000
• Dividend allowance: £500
• ISA allowance: £20,000
• Junior ISA allowance: £9,000
• Pension Annual Allowance: £60,000
• Personal Allowance: £12,570 (frozen)
• Higher Rate threshold: £50,270 (frozen)
• Additional Rate threshold: £125,140 (frozen)
• IHT Nil-Rate Band: £325,000 (frozen)
• Residence Nil-Rate Band: £175,000 (frozen)
• Wedding or civil partnership gifts of up to £5,000 for a child, £2,500 for a grandchild, or £1,000 for others.
• Small gifts up to £250 per person, with no limit on the number of recipients (as long as they haven’t received any larger gifts).

The information contained within this article is not individual financial advice and for information only. It is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change.

The value of your investments can fall as well as rise and is not guaranteed

Ovation Finance Ltd is authorised and regulated by the Financial Conduct Authority. You can find Ovation Finance Ltd on the FCA register by clicking here. Reference number: 190914. The Financial Conduct Authority does not regulate tax and estate planning.