March 31, 2026
The end of the tax year on 5 April is one of the most important dates in the financial calendar, yet most people let it pass without acting on it. Allowances are lost, opportunities are missed, and another year goes by with more tax paid than necessary. The 2026/27 tax year brings some notable changes alongside the usual annual resets, making this year’s financial planning review more important than most.
Whether you work with a financial adviser already or are looking at your finances independently, this new tax year financial checklist for 2026/27 covers the key areas to review before 5 April.
The ISA allowance for 2025/26 is £20,000 per person, and it is strictly use it or lose it. Once 5 April passes, that allowance is gone forever. Money held within an ISA grows completely free of income tax and capital gains tax, making it one of the most tax-efficient savings and investment vehicles available in the UK.
From April 2027, the rules around cash ISAs are changing, with the maximum annual cash ISA contribution for those aged under 65 dropping to £12,000. The 2026/27 tax year will be the last opportunity to contribute up to £20,000 to a cash ISA at the current limit. If you have not maximised your ISA this year, topping it up before 5 April is one of the simplest and most effective steps you can take.
The annual pension allowance for 2025/26 is £60,000, or 100% of your earnings if lower. Pension contributions receive tax relief at your marginal rate, meaning a higher-rate taxpayer putting £1,000 into a pension effectively costs them just £600 after relief. This is one of the most generous reliefs in the UK tax system and one that many people consistently underuse.
If you have unused allowance from the previous three tax years, you may be able to carry it forward and contribute more than the standard annual limit in a single year. This is particularly valuable for those who have had a higher-earning year or received a bonus.
For those who have already accessed their pension flexibly, the money purchase annual allowance (MPAA) reduces the limit to £10,000. It is important to be aware of this if you have already begun drawing on your pension savings.
If you are not sure whether you are making the most of your pension allowance, speak to a pension adviser before the tax year ends.
The capital gains tax (CGT) annual exemption is £3,000 per person for 2025/26. If you hold investments outside an ISA or pension that have grown in value, you can sell enough to realise up to £3,000 of gain before 5 April without paying any CGT. Any unused exemption cannot be carried forward, so if you have gains available, now is the time to consider taking them.
Married couples and civil partners can combine their allowances, potentially sheltering £6,000 of gains between them. It is also worth considering whether any loss-making investments could be sold to offset gains elsewhere, a strategy known as tax-loss harvesting.
CGT rates for 2025/26 are 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers on most assets. Business Asset Disposal Relief rises to 18% from 6 April 2026, so if you are considering disposing of business assets, timing matters.
From 6 April 2026, dividend tax rates are increasing. Basic-rate taxpayers will pay 10.75% on dividends above the £500 tax-free allowance, up from 8.75%. Higher-rate taxpayers will see their rate rise to 35.75%, up from 33.75%. The additional rate remains at 39.35%.
If you hold shares or investment funds outside an ISA or pension, any growth or dividends could be taxed, reducing the income you keep. Moving investments into an ISA or pension, where possible, is the most straightforward way to protect dividend income from these rising rates. The 2026 tax year financial planning review is an ideal time to assess which of your assets are outside these tax-efficient accounts and consider whether they could be moved.
Each individual has an annual IHT gifting exemption of £3,000. If you did not use last year’s allowance, you can carry it forward for one year, meaning a couple could potentially gift up to £12,000 in total before 5 April entirely free of IHT implications. Beyond this, you can make small gifts of up to £250 to any number of individuals, and make regular gifts out of surplus income free of IHT provided certain conditions are met.
With IHT thresholds frozen until at least 2031 and the pension IHT changes arriving in April 2027, reviewing your gifting strategy as part of your April 2026 financial planning review is more relevant than it has been for many years.
It sounds simple, but an incorrect tax code is surprisingly common and can mean you are paying too much or too little tax without realising it. Your tax code determines how much income tax is deducted from your pay each month. You can check it via your personal tax account on the HMRC website, or through your payslip.
Common reasons for an incorrect code include untaxed income from a previous year, taxable benefits in kind such as a company car, or changes in personal circumstances that have not yet been updated. If you are a higher earner who claims child benefit, check whether the high-income child benefit charge applies to you and whether your code reflects this correctly.
The 2026/27 tax year begins just one year before the significant pension Inheritance Tax changes come into effect in April 2027. From that date, unused pension funds will be brought into the scope of IHT for most people. This is the last full tax year in which the old rules apply, making it an ideal time to review your pension nominations, your drawdown strategy, and your wider estate plan.
Decisions made now, including whether to draw down more from your pension during your lifetime, update your expression of wishes, or restructure how you hold different assets, can have a material impact on your family’s position when the new rules take effect.
This is exactly the kind of joined-up financial planning we specialise in. Contact us today to arrange a review of your financial plan ahead of the new tax year.
The start of a new tax year is a natural moment to check that your life insurance, income protection, and critical illness cover still reflect your current circumstances. If your income has risen, your mortgage has changed, or your family situation has shifted, your existing cover may no longer be adequate. Equally, if premiums are being paid from your estate rather than through a trust, this is worth addressing before 5 April.
The 2026/27 financial planning review period is not just about ticking boxes. It is an opportunity to step back, assess your whole financial picture, and make sure your money is working as efficiently as possible. With frozen thresholds pulling more people into higher tax bands year on year, and significant rule changes on the horizon for pensions and dividends, the cost of inaction is growing.
At Beaumont Wealth, we work with clients across Shropshire, Cheshire, and North Wales to ensure they make the most of every allowance available to them. As independent, FCA-regulated advisers, we provide impartial, tailored guidance tailored to your individual circumstances.
Speak to a Beaumont Wealth financial adviser today or visit us at our offices in Shrewsbury, Chester, or Oswestry. We would be happy to help.
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