{"id":8515,"date":"2026-03-06T16:48:05","date_gmt":"2026-03-06T16:48:05","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=8515"},"modified":"2026-03-06T16:50:51","modified_gmt":"2026-03-06T16:50:51","slug":"an-introduction-to-end-of-tax-year-planning","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2026\/03\/06\/an-introduction-to-end-of-tax-year-planning\/","title":{"rendered":"An introduction to end of tax year planning"},"content":{"rendered":"<div class=\"hd-block hd-block-table\">\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Now is a great time to review and recalibrate your finances before the end of the tax year. For more information on how to make sure you\u2019re maximising your allowances this tax year.<\/td><td>Have you used up your tax allowances for the financial year? If not, you still have time to plan \u2013 but don\u2019t leave it too late! In an uncertain economy, tax efficiency is one of the best ways to give your finances a boost. <\/td><td>As the end of the tax year approaches, now is the perfect time to ensure you have your financial affairs in order and to double check that you\u2019ve taken advantage of all the tax-efficient allowances available to you.<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\">Contents<\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-list\">\n<ul><div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#section1\">Your Pension<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#section2\">Junior ISA contributions<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#section3\">Gifting for Inheritance Tax (IHT) purposes<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#section4\">IHT Update<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#section5\">Using your CGT allowance<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#section6\">Tax year-end deadline 5 April 2026<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#the-terminology\">The terminology<\/a><\/li>\n<\/div><\/ul>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>As the end of the tax year approaches, now is the perfect time to ensure you have your financial affairs in order and to double check you\u2019ve taken advantage of all the tax-efficient allowances available to you.<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 id=\"section1\"><strong>Your Pension<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>You can contribute as much as you like into your pension, but there is a limit on the amount of tax relief you will receive each year.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>This Annual Allowance is currently <strong>\u00a360,000<\/strong>. An individual can\u2019t use the full \u00a360,000 Annual Allowance where \u2018relevant UK earnings\u2019 are less than \u00a360,000, although your employer still could. You may be able to, however, carry forward unused allowances from the past three years, provided you were a pension scheme member during those years.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>For every \u00a32 of adjusted income (total taxable income including all pension contributions) over \u00a3260,000, an individual\u2019s Annual Allowance is reduced by \u00a31 (the minimum Annual Allowance is \u00a310,000).<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The Lifetime Allowance of \u00a31,073,100 was removed from 6 April 2024.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>If you have children under 18, a spouse who does not work, or who may not be earning enough to pay Income Tax, you can invest into a pension for each of them. The maximum annual contribution you can currently make is <strong>\u00a32,880 <\/strong>which, along with tax relief, would amount to <strong>\u00a33,600<\/strong> a year.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Your Individual Savings Account (ISA) allowance<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The ISA allowance is <strong>\u00a320,000<\/strong> for the 2025\/26 tax year. You can put all the \u00a320,000 into a Cash ISA, or invest the whole amount into a Stocks and Shares ISA. You can also mix and match, putting some into Cash, and some into Stocks and Shares. However, the combined amount can\u2019t exceed your annual ISA allowance.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>With pension contributions subject to limits, ISAs represent an excellent way of topping up retirement income. There is no Income Tax or Capital Gains Tax (CGT) payable on ISA proceeds. You cannot carry over your ISA allowance once the tax year has ended.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>ISA investors do not pay any personal tax on income or gains, but ISAs may pay unrecoverable tax on income from stocks and shares received by the ISA managers.<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>In certain circumstances, investors can use existing holdings to open or top up their ISAs, this arrangement is known as a <strong>Bed &amp; ISA<\/strong>. This is a way of transferring assets held outside an ISA into an ISA so that future investment income and growth are sheltered from tax. The investments are sold, cash is transferred into the ISA and the investments are repurchased. Charges apply and you could end up with a CGT liability if the gain you make on selling the asset together with any other taxable gains you make within the tax year exceeds the annual CGT allowance.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>A <strong>Lifetime ISA<\/strong> (LISA) is another option available to adults aged under 40, or under 50 for existing LISA holders.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>In the Autumn Budget 2025, the government announced a consultation on LISA reforms early in 2026 with plans to scrap the product and replace it with <em>\u2018a new, simpler ISA product to support first<\/em><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><em>time buyers to buy a home.\u2019<\/em><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>You will incur a Lifetime ISA government withdrawal charge (currently 25%) if you transfer the funds to a different ISA or withdraw the funds before age 60 and you may therefore get back less than you paid into a Lifetime ISA.<br>By saving in a Lifetime ISA instead of enrolling in, or contributing to an auto-enrolment pension scheme, occupational pension scheme, or personal pension scheme:<br>(i) you may lose the benefit of contributions from your employer (if any) to that scheme; and<br>(ii) your current and future entitlement to means tested benefits (if any) may be affected.<br>please expand FCA to Financial Conduct Authority<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 id=\"section2\"><strong>Junior ISA contributions<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Junior Individual Savings Accounts (JISAs) are a tax-efficient way to build up savings for your children (and grandchildren) and must be opened by the parent or person with parental responsibility. JISAs can be opened for any child who does not hold a Child Trust Fund (CTF) (unless the CTF is transferred to a JISA) and who is under 18 and living in the UK. The money can be held in Cash and\/or invested in Stocks and Shares.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>They work in exactly the same way as your own ISA, however, the maximum investment is <strong>\u00a39,000<\/strong> per child.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Annual allowances for ISAs, LISAs and JISAs have been frozen until 5 April 2031. This is based on current government policy, which may change. The annual allowance for cash ISAs will be \u00a312,000 for investors under the age of 65 from 6 April 2027. For investors aged 65 and over the annual allowance for cash ISAs will remain at \u00a320,000.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 id=\"section3\"><strong>Gifting for Inheritance Tax (IHT) purposes<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>You can make gifts worth up to <strong>\u00a33,000<\/strong> in each tax year. These gifts will be exempt from IHT on your death. You can carry forward any unused part of the \u00a33,000 exemption to the following year but if you don\u2019t use it in that year, the exemption will expire.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Certain gifts don\u2019t use up this annual exemption, however, there is still no IHT due on them e.g. wedding gifts of up to <strong>\u00a35,000<\/strong> for a child, <strong>\u00a32,500 <\/strong>for a grandchild (or great grandchild) and <strong>\u00a31,000<\/strong> to anyone else. Individual gifts worth up to <strong>\u00a3250<\/strong> are also IHT free.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>These are relatively small sums, but you should use these up where possible to gradually reduce your overall estate.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 id=\"section4\"><strong>IHT Update<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>During the Autumn Budget 2025, the freeze on IHT thresholds (\u00a3325,000) was extended to 2031.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>From April 2027, pension pots will be considered part of taxable estates. This significant shift is likely to result in more estates facing IHT, especially for those who have relied on pensions as a tool for inheritance planning.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>On 23 December 2025, the government issued a press release outlining an increase in the Agricultural and Business Property Reliefs threshold from \u00a31m to \u00a32.5m, with effect from April 2026. The U-turn comes on the back of protests by farmers, following the announcement in the Autumn Budget 2024 to impose a 20% tax on inherited agricultural assets worth more than \u00a31m from April 2026, bringing an end to 100% tax relief. The change to the threshold will allow spouses or civil partners to pass on up to \u00a35m in qualifying agricultural or business assets between them before paying Inheritance Tax, on top of existing allowances.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 id=\"section5\"><strong>Using your CGT allowance<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Every individual is entitled to a CGT annual allowance which is currently <strong>\u00a33,000<\/strong> (\u00a31,500 for trusts). You can\u2019t carry forward relief and so you may look to crystallise gains up to this amount before the end of the tax year. Capital losses can also be used to offset gains.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Above the CGT exemption, tax is payable at 18% for basic rate taxpayers and 24% for higher rate taxpayers. These rates were increased from 10% and 20% respectively during the Autumn Budget. The taxable gains on residential property are taxed at 18% and 24% respectively.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Assets can be transferred between married couples and civil partners without incurring a gain until the assets are subsequently disposed of. The disposal could then use both their annual exemptions.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The rate for Business Asset Disposal Relief and Investors\u2019 Relief will increase to 18% from 6 April 2026.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 id=\"section6\"><strong>Using your Dividend Allowance<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>For the current tax year, investors can earn up to <strong>\u00a3500<\/strong> in dividend income tax-free.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>How much tax you pay on dividends above the Dividend Allowance depends on your Income Tax band:<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Basic rate: 8.75%<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Higher rate: 33.75%<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Additional rate: 39.35%<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><em>*basic and higher rates of Dividend Tax will rise by two percentage points from April 2026.<\/em><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>The information contained in this guide is based on our understanding of current allowances and rates at 06.01.26, which could be subject to change.<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 id=\"section6\"><strong>Tax year-end deadline 5 April 2026<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Here\u2019s a reminder of the main tax planning opportunities:<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Pensions<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-list\">\n<ul><div class=\"hd-block hd-block-list-item\">\n<li>current Annual Allowance of <strong>\u00a360,000<\/strong><\/li>\n<\/div><\/ul>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Individual Savings Accounts (ISAs)<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-list\">\n<ul><div class=\"hd-block hd-block-list-item\">\n<li>maximum contribution of <strong>\u00a320,000<\/strong><\/li>\n<\/div><\/ul>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Junior Individual Savings Accounts (JISAs)<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-list\">\n<ul><div class=\"hd-block hd-block-list-item\">\n<li>maximum contribution of <strong>\u00a39,000<\/strong> per child<\/li>\n<\/div><\/ul>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Gifting for Inheritance Tax (IHT) purposes<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-list\">\n<ul><div class=\"hd-block hd-block-list-item\">\n<li>up to <strong>\u00a33,000<\/strong> a year<\/li>\n<\/div><\/ul>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Using Capital Gains Tax (CGT) Allowances<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-list\">\n<ul><div class=\"hd-block hd-block-list-item\">\n<li><strong>\u00a33,000<\/strong> annual exemption per person<\/li>\n<\/div><\/ul>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2><strong><strong><strong>We\u2019re here to help<\/strong><\/strong><\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>With the tax year-end imminent, please get in touch with us as soon as possible if you have any questions or want to discuss any aspect of your end of year tax planning.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>We look forward to hearing from you.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Warning statement<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Tax treatment varies according to individual circumstances and is subject to change.<\/strong><strong><\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.<\/strong><strong><\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding of taxation and HMRC rules and can be subject to change in future. It does not provide individual tailored<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details.<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Estate Planning, Inheritance Tax Planning, Trusts and Tax Planning are not regulated by the Financial Conduct Authority.<\/strong><strong><\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong><em>Approver Quilter Financial Limited and Quilter Financial Services Limited. January 2026<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Now is a great time to review and recalibrate your finances before the end of the tax year. For more information on how to make sure you\u2019re maximising your allowances this tax year. Have you used up your tax allowances for the financial year? If not, you still have time to plan \u2013 but don\u2019t [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/8515"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/comments?post=8515"}],"version-history":[{"count":2,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/8515\/revisions"}],"predecessor-version":[{"id":8517,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/8515\/revisions\/8517"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=8515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=8515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=8515"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=8515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}