With the end of the tax year fast approaching, it’s worth taking stock of your finances to make sure you’re making the most of available allowances. Here are five frequent oversights to watch out for before 5 April.
1. Not using your ISA allowance
Individual Savings Accounts (ISAs) are one of the simplest tax shelters available. For the 2025/26 tax year, up to £20,000 can be invested tax-free across cash, stocks and shares, or innovative ISAs.
Why take action? ISA allowances can’t be carried forward, so if you don’t use yours by 5 April, it disappears.
Quick win: Set up a final top-up amount or regular payments to ensure you hit your target before the deadline.
2. Overlooking pension contributions
Pensions continue to be an efficient way to build wealth thanks to tax relief and compounding. The annual allowance for 2025/26 is up to £60,000 (or 100% of earnings if lower), with the ability to carry unused allowances forward for up to three previous years.
Why it matters: Contributions benefit from tax relief at your marginal rate, helping reduce overall tax liability.
Quick win: Check your allowance position and consider maximising contributions before 5 April. Professional guidance in understanding your limit can be invaluable here.
3. Missing Capital Gains Tax planning
Selling investments or assets may trigger Capital Gains Tax, however, there’s an annual exemption of £3,000 for 2025/26.
Why it matters: Like ISA allowances, unused CGT exemptions don’t roll forward. Delaying disposals could mean larger future tax bills.
Quick win: Review portfolios for gains that could be realised tax-free or consider placing assets with a spouse who has lower gains or unused allowances to optimise the position.
4. Not using IHT gifting allowances
Inheritance Tax (IHT) planning doesn’t have to wait until later in life. The annual gifting exemption is £3,000, with the potential to carry it over one year if unused.
Why it matters: Regular gifting helps reduce the size of your estate and future IHT exposure.
Quick win: This allowance can be used alongside the £250 small gifts exemption per recipient, making gradual estate planning straightforward.
5. Leaving everything to the last minute
A common theme is timing – many allowances and reliefs require processing time and can’t be completed instantly.
Why it matters: Rushed decisions risk errors, missed opportunities, or contributions not being processed in time.
Quick win: Review your financial position early and seek advice where needed to avoid year-end pressure.
Final note
A little preparation before the tax year-end can have a meaningful impact on your finances by reducing unnecessary tax and making sure you don’t lose allowances for good. If you’re unsure where to start or want personalised guidance, contact us on 01276 34932, or you can email us via hello@s4financial.co.uk.