The UK tax year runs from 6 April 2025 to 5 April 2026. As 5 April approaches, a handful of straightforward checks can prevent avoidable tax and admin issues later.
This guide is written by Priority Wealth Planning, independent financial advisers based in Ilkley, supporting clients across West Yorkshire and North Yorkshire. It is designed to be easy to scan and practical to use.
A common mistake is looking only at salary. In practice, thresholds can be affected by other income too, such as bonuses, dividends, savings interest and rental income.
Child Benefit: repayment can start from £60,000
If Child Benefit is being claimed and one parent’s income is over £60,000, you may have to repay some Child Benefit through tax. From £80,000, the repayment can reach 100%. The repayment builds at 1% for every £200 over £60,000.
If your income varies year to year, it is worth checking this before the tax year ends, especially after bonus season.
The £100,000 point: personal allowance starts to reduce
Once income goes over £100,000, the standard Personal Allowance is reduced gradually. It is fully removed at £125,140. This creates an unusually high effective tax rate in that band.
If you are anywhere near this range, a year end review is often worthwhile because timing and reliefs can change the outcome.
More people now pay tax on savings interest, simply because interest rates have been higher and allowances have not kept up.
The Personal Savings Allowance is:
• £1,000 for basic rate taxpayers
• £500 for higher rate taxpayers
• £0 for additional rate taxpayers
If you hold significant cash across several accounts, total your interest for the year and check whether it exceeds your allowance. This is especially relevant if you have joint accounts, multiple savings pots or a large balance earning a modest rate.
The dividend allowance for 2025/26 is £500. Dividends above the allowance may be taxed depending on your income tax band.
Year end checks:
• Are dividends landing outside tax wrappers when they could be inside an ISA?
• Are you keeping records of dividend income across platforms and accounts?
• If you are a director shareholder, does your overall mix of salary and dividends still make sense for your household circumstances?
The adult ISA allowance for 2025/26 is £20,000 per person. If you do not use your allowance by 5 April, it cannot be carried forward.
A simple way to think about it:
• Cash and investments held inside ISAs can help reduce ongoing tax on interest, dividends and gains
• Couples can each use their own allowance, which can make a meaningful difference over time
Family allowances that are often forgotten:
• Junior ISA allowance: £9,000
• Lifetime ISA contributions: up to £4,000 per tax year, subject to eligibility and rules (and this sits within the overall £20,000 ISA allowance)
For 2025/26, the Capital Gains Tax annual exempt amount is £3,000 for individuals.
This matters if you hold investments outside tax wrappers, for example funds such as unit trusts and OEICs, investment portfolios or other taxable holdings.
Useful year end checks:
• Do you have gains you were planning to realise anyway?
• Would splitting a sale across two tax years reduce the tax spike?
• Have you realised any losses that can be used to offset gains?
• Are you aware of the share matching rules that can apply if you sell and buy back quickly?
This is one area where the mechanics matter as much as the decision, so it is worth getting the detail right.
For married couples and civil partners, the way assets are held can change the overall tax outcome. Common year end checks include whether income producing assets are held in the most tax sensible names.
Marriage Allowance
If one spouse or civil partner is a non taxpayer and the other is a basic rate taxpayer, it may be possible to transfer £1,260 of Personal Allowance. This can reduce the recipient’s tax bill by up to £252 for 2025/26, if eligible.
If you have surplus funds you do not need for lifestyle, contingencies or planned spending, gifting allowances are worth revisiting before 5 April.
Common allowances to be aware of:
• £3,000 annual gift exemption
If last year’s £3,000 exemption was unused, it can be carried forward for one tax year, and the older allowance must be used first.
• Small gifts allowance
You can make small gifts of up to £250 per person to different people, subject to conditions.
If you make gifts, record keeping matters. Keep a simple note of the amount, date, recipient, and the reason for the gift, particularly if gifts are regular.
Regular gifts out of surplus income can also be relevant for some families, but this is an area where it is sensible to document the pattern properly.
Pensions are often central to year end planning, but the right action depends on your earnings, allowance position and whether you have taken pension benefits.
Key points to review:
• Annual allowance: the standard annual allowance is £60,000 for 2025/26, though this can be limited by earnings rules and can be tapered for some individuals
• Carry forward: you may be able to use unused annual allowance from earlier tax years, subject to the rules
• Money Purchase Annual Allowance (MPAA): if you have taken certain types of flexible pension income, your future contribution limit can reduce. The MPAA is £10,000 for 2025/26
If you are planning a larger pension withdrawal, consider whether splitting it across tax years would reduce the amount taxed at higher rates.
If you are not on track for the full new State Pension, it can be worth checking whether you have gaps in your National Insurance record, and whether voluntary contributions are good value for you. This is not always needed, but it is often overlooked.
If you are a company director, year end is a good moment to review:
• Salary and dividend mix
• Whether dividends align with share ownership and household planning
• Pension contributions made by the company and personal contributions where relevant
• The timing of dividends and bonuses, particularly if you are near thresholds that trigger repayment or reduce allowances
This is also an area where your accountant’s year end position and your personal tax planning should line up, rather than being treated separately.
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Please Note
Taxation Planning is not regulated by the Financial Conduct Authority.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
A pension is a long-term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates, and tax legislation.
An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.
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