From personal tax allowance to ISAs, there are many tax opportunities that can’t be carried into the next financial year, meaning that you either use the allowances before 5th April, or risk losing them.
While not every option will be right for your circumstances or financial goals, being informed may help you focus on the opportunities that present the most value for you.
Below, we walk through some of the tax-year considerations that often come up before 5th April, and how they may fit into your wider financial picture.
Have you checked your personal tax allowances?
Every individual has a personal allowance before income tax applies. For the 2025/26 tax year, this allowance is £12,570. If your income has varied during the year, or comes from more than one source, it may be worth checking whether you have used your allowance fully. Changes to working patterns, bonuses, or investment income can sometimes affect this without it being obvious.
For couples, this review could also include whether a transfer of personal allowance applies. The Marriage Allowance allows up to £1,260 of unused personal allowance to be transferred between partners in certain circumstances. This won’t apply to everyone, but understanding whether it does could help explain how your household income is being taxed.
Are you considering your pension contributions?
Pension contributions are often revisited towards the end of the tax year because of the tax relief they attract and the way they interact with your taxable income.
For the 2025/26 tax year, the pension annual allowance is £60,000, or 100 percent of earnings if lower. Your annual allowance may be reduced if you are a higher earner or have already accessed pension benefits. In some cases, it’s possible to carry forward unused allowance from the previous three tax years, although this depends on your income and the type of pension arrangements you have.
Rather than focusing on allowances alone, this time of year may also be a chance for you to step back and look at how your pension contributions fit within your wider plans. That might include how you expect to draw income in the future, how much flexibility you’d like, and how different pots of money are likely to be used at different stages.
If you’re in the years leading up to retirement, cash flow modelling might be a helpful way to see how your current contribution levels may shape your future retirement income. We explore this in more detail in our latest guide, which you can read here.
Have you used tax-efficient savings such as ISAs?
ISA allowances are tied to the tax year and don’t roll over, meaning any unused allowance by 5th April will be lost.
For the 2025/26 tax year, the ISA allowance remains £20,000 per individual. If you have a partner, their allowance is separate, which is why savings are often best considered at a household level rather than an individual one.
Junior ISAs may also be relevant if you’re saving on behalf of children, with an allowance of £9,000 for this tax year.
Deciding whether to use your ISA allowances is usually less about the allowance itself and more about how accessible you need those savings to be, how long the money may be set aside for, and how they fit alongside your other priorities. Taking time to consider these factors before acting may help you avoid making decisions that don’t support your wider financial plans.
Will you review your capital gains planning?
Each tax year includes a Capital Gains Tax annual exempt amount. For the 2025/26 tax year, this is £3,000 per individual.
If you hold investments or assets outside ISAs or pensions, the timing of disposals are likely to affect how your gains are taxed. For some people, this review is simply about understanding whether gains have already been realised during the year, rather than planning new disposals.
Any decisions around capital gains are usually best considered in the context of your overall investment strategy, rather than tax treatment alone. This is another area where stepping back and looking at the bigger picture might be more valuable than focusing on a single allowance in isolation.
Are there other allowances or exemptions worth checking?
Alongside the more familiar allowances, there are several others that operate on a tax-year basis and can easily be overlooked, particularly when your finances are shared with a partner, or you’re already making gifts to family members.
These include allowances linked to shared household income, as well as the annual gifting exemption for inheritance tax purposes, which allows up to £3,000 of gifts each tax year without inheritance tax implications.
Depending on your circumstances, there may be other allowances that apply. Unused exemption from the previous tax year may also be available in certain circumstances. A year-end review could help confirm whether any of these are relevant, and whether they’re being used as intended, even if no immediate changes are made.
Does charitable giving or Gift Aid make sense for your financial goals?
If you already give to charity, the end of the tax year might be a useful point to pause and review how those donations are being made.
Charitable donations may attract tax relief when Gift Aid applies. Under Gift Aid, charities can reclaim basic rate tax (currently 20 percent) on eligible grossed-up donations, and if you pay tax at a higher rate, you may be able to claim additional relief through your tax return.
A review doesn’t have to mean giving more money away, it may simply involve checking whether Gift Aid is in place where appropriate, or whether your donations are being made in a way that still fits with your wider financial arrangements and priorities.
Have you thought about your broader tax picture?
End-of-year planning isn’t limited to savings and allowances. Checking your tax code, reviewing investment income, or understanding how dividend and savings allowances apply could all potentially form part of a wider review.
For the 2025/26 tax year, the dividend allowance is £500, while the Personal Savings Allowance remains at £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers. Individually these amounts may seem small, but together they influence how income is taxed over time. Additional-rate taxpayers do not receive a Personal Savings Allowance.
This kind of review can be particularly relevant in the years leading up to retirement, when financial decisions made now may shape your future income and its flexibility.
Understanding where you stand before 5th April
The end of the tax year doesn’t have to mean rushing into decisions. For many people, it’s a useful point to pause, take stock, and understand how different parts of their finances fit together.
Whether it’s allowances you’ve already used, areas you’ve reviewed but chosen not to change, or questions you’d like to explore the potential answers to further, having a clearer overview can make future planning feel more manageable, particularly in the years leading up to retirement. You can explore this in more detail in our Retiring on Target guide.
If you’d find it helpful to talk through where you stand and how these different areas fit into your wider financial plans, a conversation with a Flying Colours adviser could offer reassurance and perspective as you look ahead.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
References to tax allowances, pensions, savings, and investments are provided for educational purposes only. The tax implications of pension contributions, withdrawals, or other tax planning decisions will depend on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in future Finance Acts.
Where pensions or investments are mentioned, the value of investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and in the context of your overall risk profile and financial circumstances.
A pension is a long-term investment and is not normally accessible until age 55 (rising to 57 from April 2028). The value of pension funds may fluctuate, which could affect the level of benefits available. Past performance is not a reliable indicator of future performance.
The Financial Conduct Authority does not regulate cashflow planning, tax planning, or estate planning.
If you are unsure whether any of the points discussed apply to your situation, you may wish to consider taking regulated financial advice before making any decisions.