Make the Most of Your Tax Allowances Before 6 April 2026

As the end of the tax year approaches, it’s worth taking a moment to check whether you’ve made the most of the allowances and exemptions available to you. Many of these valuable opportunities reset on 6 April 2026, and once the deadline passes, unused allowances are lost for good. A little preparation now can help your money work harder  – whether you’re planning for the future, supporting family, or simply trying to keep more of what you earn.

Below, we explore the key allowances individuals and couples should review before the tax year closes, along with practical steps to help you make the most of them.

1. Maximise Your ISA Allowances

ISAs remain one of the most tax‑efficient ways to save and invest. The annual ISA allowance is £20,000 per person, and it resets every 6 April. If you don’t use it, you lose it.

Why it matters

• No tax on interest, dividends, or capital gains.
• Flexibility to save in cash, invest in stocks and shares, or use a combination.
• Couples can shelter up to £40,000 between them each year.

What to consider before year end

• Could you top up your existing ISA to use more of your allowance?
• If you’re holding large cash balances outside an ISA, would moving them into a Cash ISA help protect interest from tax?
• If you’re investing for the long term, would a Stocks & Shares ISA offer better growth potential?

Even small contributions add up over time, and using your allowance annually can build a significant tax‑free pot.

2. Review Your Pension Contributions

Pensions offer some of the most generous tax advantages available, and the annual allowance for most people is £60,000 or up to 100% of earnings (whichever is lower). Higher earners may be subject to the tapered annual allowance, while those with lower incomes may still benefit from tax relief on contributions.

Why it matters

• Contributions receive tax relief at your marginal rate.
• Investments grow free from UK income tax and capital gains tax.
• Pensions can be an efficient way to pass on wealth.

What to consider before year end

• Have you contributed enough to maximise employer matching?
• If you’re a higher‑ or additional‑rate taxpayer, have you claimed all the tax relief you’re entitled to?
• Could you use unused allowances from the previous three tax years under the carry‑forward rules?

For couples, pension planning can also help balance retirement income and manage tax bands later in life.

3. Use Your Capital Gains Tax (CGT) Exemption

The annual CGT exemption allows you to realise a certain amount of gains tax‑free each year. If you hold investments outside an ISA or pension, reviewing them before year end can help you avoid unnecessary tax later.

Why it matters

• Realising gains gradually can reduce future tax bills.
• Couples can make use of two allowances by transferring assets between them (transfers between spouses and civil partners are generally tax‑free).

What to consider before year end

• Do you have investments with gains that could be realised within your annual exemption?
• Could you rebalance your portfolio more tax‑efficiently by using both partners’ allowances?
• If you’ve made losses, have you registered them with HMRC so they can be used to offset future gains?

CGT planning is especially useful for long‑held assets that have grown significantly in value.

4. Make the Most of Dividend and Savings Allowances

Even outside tax‑sheltered accounts, you may be able to earn some income tax‑free.

Dividend allowance

The dividend allowance lets you receive a portion of dividend income without paying tax. If you hold shares or funds outside an ISA, it’s worth checking whether you’re using this allowance efficiently — or whether moving assets into an ISA could help.

Personal savings allowance

Depending on your tax band, you may be able to earn interest tax‑free:

• Basic‑rate taxpayers: up to £1,000
• Higher‑rate taxpayers: up to £500
• Additional‑rate taxpayers: £0

With interest rates still relatively high, more savers are finding themselves paying tax on interest for the first time. Reviewing where your savings sit could help reduce that bill.

5. Consider Gifting and Inheritance Tax (IHT) Allowances

If you’re thinking about supporting family or passing on wealth, several gifting allowances reset each tax year.

Key allowances

• £3,000 annual gifting allowance (per person)
• £250 small gifts allowance (per recipient)
• Wedding gifts: up to £5,000 for a child, £2,500 for a grandchild, or £1,000 for others

Why it matters

• Gifts within these allowances are immediately exempt from IHT.
• Couples can combine allowances to gift more tax‑efficiently.

If you didn’t use last year’s £3,000 allowance, you may be able to carry it forward — but only for one year.

6. Check Your Child Benefit Position

If one partner earns over £60,000, the High Income Child Benefit Charge may apply. However, opting out of receiving payments doesn’t stop you from claiming Child Benefit — and claiming ensures you receive National Insurance credits that count towards your State Pension.

Before year end, consider:

• Whether your income for the year affects your Child Benefit position.
• Whether pension contributions could reduce your adjusted net income and preserve more of the benefit.

7. Review Marriage Allowance Eligibility

Marriage Allowance lets one partner transfer a portion of their personal allowance to the other, potentially reducing the household tax bill. It’s available where:

• One partner is a non‑taxpayer.
• The other is a basic‑rate taxpayer.

You can also backdate claims, so it’s worth checking whether you’re eligible before the year closes.

8. Think About Charitable Giving

Donations to UK‑registered charities can reduce your tax bill through Gift Aid. Higher‑ and additional‑rate taxpayers can claim extra relief through their tax return.

Before year end, consider:

• Whether you want to bring forward planned donations.
• Whether Gift Aid could help reduce your taxable income for the year.

9. Review Your Overall Tax Position

A final sweep of your finances can help you spot opportunities you might otherwise miss. Consider:

• Are you making the most of allowances across both partners?
• Are your savings and investments held in the most tax‑efficient places?
• Could shifting income or assets between partners reduce the household tax bill?
• Are you on track with your long‑term goals?

A little organisation now can prevent last‑minute stress and help you enter the new tax year with confidence.

Final Thoughts

The run‑up to 6 April is the perfect moment to take stock. Many allowances operate on a strict “use it or lose it” basis, and once the deadline passes, the opportunity disappears. By reviewing your ISAs, pensions, investments, savings, and gifting allowances — and by planning as a household rather than as individuals — you can make your money go further and build a more secure financial future.

The next step

To make the most of your allowances before they reset, it can help to speak with someone who understands the nuances of tax‑efficient planning. A Kellands Financial Planner can review your situation, highlight opportunities you may have overlooked, and help you make confident, well‑informed decisions before the 6 April deadline. If you’d like personalised guidance, get in touch with the Kellands team — we’re here to help you make the most of every allowance available.

Please note

This guide is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at individuals only.

Taxation reliefs, levels and bases can change in the future and the contents of this website refer to our understanding of current taxation legislation.

Tax is dependent on your own personal situation and circumstances and is subject to change based on UK legislation and taxation.

The Financial Conduct Authority does not regulate tax planning.

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