Article last updated 17 March 2026.
The start of a new year is the perfect time to reset finances and plan ahead. The UK tax year ends on 5 April 2026, a pound saved in tax this year could be a pound of compounding towards your clients financial goals tomorrow. This information is based on our understanding of HMRC tax rules in the UK which could change.
UK Tax Year End Checklist 2026
Here’s a practical checklist to maximise tax efficiency:
Action
- Encourage clients to use their ISA allowance (£20,000/adult, £9,000/child)
- Review a clients pension contributions (up to £60,000)
- Encourage clients to make use of gifting allowances (£3,000/year)
- Check for clients capital gains or dividend income outside wrappers
- Review clients 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 ISA allowance before 5 April
Unused ISA allowances expire at the end of the tax year. To maximise tax-free growth in your clients savings and investments they need to use their allowance before 5 April:
- Adult ISA allowance: £20,000 per tax year
- Junior ISA allowance: £9,000 per child per tax year
Other ways for clients to start the New Year well
- Review pension contributions and unused allowances: The pension annual allowance for 2025/26 is £60,000. Clients may be able to carry forward unused allowances from the previous three tax years.
- Make use of clients gifting allowances: Each tax year, they can give away £3,000 without it falling into their 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 household finances and set a budget.
- Set longer-term financial goals: Once they understand their 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 for clients to reset their finances after an expensive holiday season, ensure they're using all their 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 a clients personal circumstances, which could change.