Can I Still Use My Tax Allowances Before The Deadline?

Saving money on taxes can sometimes feel like navigating a maze of acronyms and rules. Pensions, ISAs, CGT, dividends… the financial world loves its shorthand. But behind the jargon, many government incentives exist to help you keep more of your money. The challenge, though, is making use of these tax allowances before their deadline as many of them operate on a strict “use it or lose it” basis.

With the UK tax year ending on 5th April, the clock is ticking. If you haven’t yet used certain allowances, you may still have time to act. Even last-minute planning can make a meaningful difference to your tax bill.

So, are there opportunities you can still take advantage of before the deadline? Let’s take a closer look.

Why the tax year deadline matters

The UK tax year runs from 6th April to 5th April the following year. When the new tax year begins, many allowances reset. That means unused allowances often disappear entirely.

Examples of allowances include:

• the ISA allowance
• capital gains tax allowances
• the dividend allowance

If you don’t use them before the deadline, they generally cannot be carried forward.

As one First Wealth financial planner explains:

“The end of the tax year is one of the most important planning points in the calendar. A quick review of your allowances can often uncover opportunities to reduce tax that would otherwise be lost.”

Can you still use your tax allowances before 5 April?

In many cases, yes… as long as you act before midnight on 5 April 2026. After that point, most unused allowances for the current tax year are gone for good.

That means there may still be time to take action, such as:

• making pension contributions
• investing within your ISA allowance
• making charitable donations
• realising gains within capital gains tax allowances

Even small adjustments before the deadline can improve your tax efficiency.

For example, a professional couple reviewing their finances with a planner realised they had unused ISA capacity. By investing the remaining allowance before the deadline, they ensured £40,000 of savings would grow free from income tax and capital gains tax going forward.

Key tax allowances you may still be able to use

ISA allowance

One of the most widely used tax allowances is the ISA allowance.

Key facts:

• Annual ISA allowance: £20,000 (as of tax year 2025/26)
• Growth and withdrawals are tax-free
• The allowance resets every tax year
• Different types exist, including a Cash ISA and a Stocks & Shares ISA.

If you haven’t yet used your full ISA allowance, you can still invest before 5 April. Over time, consistently using your ISA allowance can create a substantial tax-free investment portfolio.

Pension annual allowance

Pensions offer another powerful opportunity for tax planning. For higher earners, this can be particularly valuable.

Key facts:

• Standard annual allowance: typically £60,000
• Contributions receive tax relief
• Contributions may reduce taxable income

For the 2025/26 tax year, you can generally pay up to £60,000 or 100% of your annual taxable earnings (whichever is lower) into your pensions while receiving tax relief. If you earn less than £3,600 or have no earnings, you can still contribute up to £3,600 per year (including tax relief).

On the other end of the spectrum, your annual allowance can be tapered if your income goes over a certain threshold. Currently, your allowance will be tapered if:

• Your threshold income is over £200,000 (i.e. generally your income minus how much you pay into a pension)

And

• Your adjusted income is over £260,000 (i.e. all your income plus how much your employer pays into your pension)

If you meet these two criteria, your allowance may reduce to an amount between £60,000 and £10,000. For every £2 of adjusted income you have that exceeds £260,000, your allowance is reduced by £1.

In some circumstances, unused pension allowances from the previous three tax years can be carried forward, allowing significantly larger contributions. For example, a consultant earning £150,000 used pension carry forward rules to contribute £90,000 in a single year, dramatically reducing their tax liability.

However, the pension contribution rules can be complex, so advice is essential. Plus, legislation can change regularly too. For instance, it is likely that pensions will be subject to Inheritance Tax (IHT) in April 2027.

Capital gains tax allowance

If you are planning to sell investments or assets, it may be worth reviewing your capital gains tax allowances. Selling assets before the tax year ends may allow you to realise gains within your annual exemption.

Strategies can include:

• selling investments to crystallise gains
• transferring assets to a spouse to use both partners’ capital gains tax allowances

Dividend allowance

Investors receiving dividend income should also consider the dividend allowance. This allowance reduces the tax paid on dividend income from shares and investment funds. While the dividend allowance has reduced in recent years, it still plays an important role in tax-efficient portfolio management. Reviewing how investments are structured across ISAs, pensions and taxable accounts can help make the most of the dividend allowance.

Gift Aid donations

Charitable giving can also offer tax benefits. Donations made through Gift Aid can:

• reduce taxable income
• increase tax relief for higher-rate and additional rate taxpayers
• potentially help restore personal allowance for higher earners

If you already support charities, ensuring donations are made using Gift Aid can improve the tax efficiency of your giving.

Last-minute tax planning strategies before the deadline

If the deadline is approaching, there are still some practical steps you could consider:

• topping up pension contributions
• investing any remaining ISA allowance
• reviewing portfolios to use capital gains tax allowances
• making charitable donations
• transferring assets between spouses
• reviewing dividend income and the dividend allowance

Even small adjustments can help improve tax efficiency.

Common tax allowances people forget to use

Some valuable allowances are surprisingly easy to overlook.

These can include:

• pension carry forward
• Junior ISA allowances
• spousal capital gains transfers
• Marriage Allowance

A quick review of these areas before the deadline can sometimes reveal opportunities many people miss.

What happens if you miss the deadline?

Once the tax year ends on 5 April:

• unused ISA allowance disappears
• some capital gains tax allowances may go unused
• certain tax planning opportunities are lost

While planning can continue in the new tax year, some of the most valuable opportunities only exist before the deadline.

When financial advice can help

Tax planning can quickly become complex, particularly when multiple allowances interact. A financial planner can help with:

• using tax allowances effectively
• tax-efficient investment strategies
• pension planning
• managing capital gains tax allowances
• structuring portfolios around the dividend allowance
• long-term wealth planning

Most importantly, advice can help ensure opportunities aren’t missed each year.

Don’t leave valuable tax allowances unused

With the tax year-end approaching, now is the ideal time to review your finances. A simple conversation could help identify unused tax allowances, opportunities to use your ISA allowance or ways to manage capital gains tax allowances and the dividend allowance more effectively.

If you’d like help reviewing your options before the deadline, get in touch with our team today. We’d be happy to discuss your situation and help ensure you’re making the most of the allowances available to you.

This article does not constitute tax, legal or financial advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional advice. This document is provided for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial product. The Financial Conduct Authority does not regulate estate planning or tax planning. A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.

This document is marketing material for a retail audience and does not constitute advice or recommendations. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.