Income tax rates and thresholds remain unchanged for now, with the personal allowance at £12,570 and the higher rate threshold at £50,270. However, these thresholds are frozen until 2031, which means more people are likely to drift into higher tax bands as earnings rise.

For those with income between £100,000 and £125,140, careful planning remains particularly important due to the effective loss of the personal allowance across this range.

Before the tax year ends, it is worth considering:

• Pension contributions, which reduce taxable income
• Moving savings and investments into tax-efficient wrappers such as ISAs
• Reviewing whether income can be structured more efficiently across a household

These steps can help manage exposure to higher tax rates over time.

 

Making the most of ISA and savings allowances

The overall ISA allowance remains £20,000 for the current tax year. From April 2027, restrictions will apply to how much can be held in cash ISAs for those under 65, making this an important year to review how savings are structured.

ISAs continue to offer a straightforward way to shelter interest, dividends and capital growth from tax. Reviewing the balance between cash ISAs, stocks and shares ISAs and taxable savings accounts can help ensure your money is working efficiently.

Your personal savings allowance also remains in place, although it reduces as income rises. Reviewing interest earned across all accounts before the tax year ends can help avoid unnecessary tax exposure.

 

Pension contributions: a valuable year-end tool

Pensions remain one of the most tax-efficient ways to save for the long term. Contributions can reduce income tax today while building future retirement income.

Key points to review before 5 April include:

• Whether you have fully used your annual pension allowance
• Whether unused allowance from previous years can be carried forward
• Whether personal contributions align with current earnings

Tax relief is applied at your highest marginal rate, making pension contributions particularly valuable for higher and additional rate taxpayers. Employer contributions also count towards the annual allowance and can form part of an effective strategy.

 

Capital gains tax: planning before you sell

If you are considering selling investments or other assets, it is important to understand any potential capital gains tax exposure before completing a transaction.

The annual exempt amount remains £3,000. Gains above this are taxed at different rates depending on your income and the type of asset. Planning ahead can sometimes allow:

• The use of allowances across more than one tax year
• Transfers between spouses or civil partners
• The timing of disposals to better align with income levels

Discussing planned sales in advance often provides more flexibility than reacting after the event.

 

Gifting and longer-term planning

For those with surplus income, regular gifting can form part of an effective longer-term planning approach. Making use of annual exemptions and understanding how gifts fit into wider estate planning can help support family members while keeping plans aligned with your own financial security.

 

Your pre-5 April checklist

Before the tax year ends, consider reviewing:

• ISA contributions and overall savings structure
• Pension contributions and unused allowances
• Investment performance and asset allocation
• Planned asset sales and CGT exposure
• Gifting from surplus income

Small actions taken now often compound into meaningful benefits over time.

 

Speak to Appletree

Tax planning works best when it is joined up with your wider financial goals. At Appletree, we help clients review their position ahead of the tax year end and identify practical steps that make sense for their circumstances.

If you would like to get your ducks in a row before 5 April, speak to the Appletree team. A timely review can help ensure the year ahead starts on solid financial footing.

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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.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

For specialist tax advice, please refer to an accountant or tax specialist