Year-End Tax Planning Checklist

Key facts

The UK tax year ends on 5 April — most allowances are use-it-or-lose-it.
ISA allowance: £20,000 per person.
Pension annual allowance: £60,000 (or 100% of earnings).
CGT annual exemption: £3,000 per person.
Dividend allowance: £500 per person.

Why Year-End Planning Matters

The UK tax year runs from 6 April to 5 April. Most tax allowances, exemptions, and reliefs are annual — they cannot be carried forward if unused. A few hours of planning before 5 April can save you hundreds or thousands of pounds.^[1]

The Year-End Checklist

1. Use Your ISA Allowance

Contribute up to £20,000 into Cash, Stocks & Shares, or Innovative Finance ISAs^[2]
Couples: use both allowances for £40,000 combined
Consider a Lifetime ISA (up to £4,000 with 25% bonus) if eligible
If you cannot invest the full amount, even a partial contribution is better than nothing

2. Maximise Pension Contributions

Annual allowance: £60,000 (or 100% of relevant earnings)^[3]
Check for carry forward from the previous three years
Company directors: consider employer contributions before the accounting year end
Salary sacrifice arrangements should be in place before 6 April for the new year

3. Use Your CGT Annual Exemption

Crystallise up to £3,000 of gains tax-free^[4]
Consider bed & ISA to shelter future growth
Transfer assets to your spouse for a combined £6,000 exemption
If you have losses, consider timing them carefully to avoid wasting your exemption

4. Check Your Dividend Planning

The £500 dividend allowance is use-it-or-lose-it
If you control dividend timing (as a director), consider declaring dividends to use both spouses’ allowances
Check whether taking more dividends before 5 April keeps you within the basic rate band

5. Use Your Personal Allowance

Ensure both spouses are using their £12,570 personal allowance
Consider the Marriage Allowance if one spouse is a non-taxpayer
Check whether you are losing your personal allowance (tapered from £100,000 of income)

6. Make Charitable Donations

Gift Aid donations extend your basic rate band by the gross amount
This can be useful for keeping income below the £50,270 higher-rate threshold
Or below £100,000 to preserve your personal allowance
Carry-back elections let you claim this year’s donation on last year’s return

7. Review Loss Positions

Capital losses must be claimed — register them with HMRC within 4 years
Trading losses can be carried back one year (or three years on cessation)
Consider whether to realise losses now or carry investments forward

8. Check Your National Insurance

Make sure you have a qualifying year for State Pension purposes
Pay voluntary Class 2 or Class 3 contributions to fill gaps before the deadline
Review your NI record at gov.uk/check-national-insurance-record

Pro tip: Create a simple spreadsheet listing each allowance, its limit, and how much you have used. Update it quarterly so year-end planning is a quick review rather than a scramble.

Allowances at a Glance (2025/26)

Allowance	Amount	Carry Forward?
Personal allowance	£12,570	No
ISA allowance	£20,000	No
Pension annual allowance	£60,000	Yes (3 years)
CGT annual exemption	£3,000	No
Dividend allowance	£500	No
Personal savings allowance	£1,000/£500/£0	No
Marriage Allowance transfer	£1,260	No (but can backdate 4 years)
Trading allowance	£1,000	No
Property allowance	£1,000	No

Frequently Asked Questions

When should I start year-end tax planning?

Ideally from January onwards, to give yourself time to implement strategies before 5 April. Some actions (like pension contributions or ISA funding) can be done quickly, but others (like transferring shares to a spouse) may take longer.

Can I carry forward unused personal allowance?

No. The personal allowance (£12,570) cannot be carried forward. If you do not use it in the tax year, it is lost. The only exception is the Marriage Allowance, where a non-taxpayer can transfer £1,260 to their spouse.

What is the deadline for pension contributions?

Personal pension contributions must be made by 5 April to count for that tax year. Employer contributions are normally accounted for in the period they are paid, so aim to have them made before the company’s accounting year end for a Corporation Tax deduction.

Can I make last-minute ISA contributions?

Yes, but leave enough time for the money to reach your ISA provider. Bank transfers are usually instant, but cheques or transfers from other platforms may take several days. Most providers set a cut-off date a few days before 5 April.

Sources

Income Tax rates and personal allowances — GOV.UK
Individual Savings Accounts (ISAs) — GOV.UK
Tax on your private pension contributions — GOV.UK
Capital Gains Tax: rates and allowances — GOV.UK