The end of the financial year is nearly upon us, and it’s time to get in quick and make the most of exemptions before April is upon us. But that’s not all that should be on your financial spring cleaning list. Here’s our ten-point guide on what to tick off before the 2025–26 tax year kicks off.
1. CHECK YOUR INCOME TAX BRACKET
2. MAKE THE MOST OF YOUR DIVIDEND ALLOWANCE
The annual tax-free dividend allowance for 2023/24 is £1,000, but it will fall to £500 in 2024/25. If you have investments in shares or dividend-paying funds, ensure you maximise this allowance. If your dividends exceed the allowance, consider shifting shares into an ISA or using joint accounts with or gifting to a spouse to reduce the overall tax liability.
3. USE YOUR ISA ALLOWANCE
4. CAPITAL GAINS TAX EXEMPTION
5. £3,000 ANNUAL GIFTING ALLOWANCE
6. MAXIMISE PENSION CONTRIBUTIONS
7. EVEN NON-TAXPAYERS CAN BENEFIT FROM PENSION TAX RELIEF
8. CARRY FORWARD UNUSED PENSION ALLOWANCES
9. CHECK INHERITANCE TAX (IHT) PLANNING
10. REVIEW TAX-EFFICIENT INVESTMENTS
It’s also a great time of year to go through your outgoings to weed out any redundant subscriptions and set up new regular deposits into savings and investments for the year. Booking a check-in with your financial advisor is also the best way to start the new 2025 tax year.
