The 2026/27 Tax Year Checklist: How to Make the Most of Your Allowances

Saving on your tax bill can sometimes feel like a gargantuan, impenetrable task. Pensions, investments and savings products all come with their own rules and language that can make your head spin. But behind the jargon sits a simple idea: the UK tax system’s allowances are there to help you keep more of your money.

The challenge with allowances? Many of them reset every year.

That’s why having an end of tax year checklist can make a real difference to your long-term wealth. Because, with the right planning, investors and professionals can potentially reduce their tax bill while strengthening their financial position.

So before the end of the tax year arrives, it’s worth asking: are you making the most of every allowance available to you?

Why the end of the tax year matters

The UK tax year runs from 6th April to 5th April, with many key tax allowances refreshing annually at the start of the year. If you don’t use them before the 5th April deadline, they’re usually lost forever.

That’s why allowances for ISAs, pension contributions and capital gains exemptions are some of the most commonly reviewed areas in end of tax year planning. Having a structured end of year checklist can help ensure important opportunities aren’t overlooked, especially for busy professionals who may be focused on careers, businesses or family life.

So let’s walk through a practical end of financial year checklist to help you make the most of the 2026/27 tax year.

The 2026/27 tax year checklist

When you run through the following, remember not every item will apply to everyone. That being said, it can still be beneficial to review them every year, as you could potentially uncover valuable tax efficiencies as your financial circumstances evolve.

1. Use your ISA allowance

The annual ISA allowance is £20,000. Any income or investment gains inside an ISA are tax-free. That makes ISAs one of the most powerful tools in any end of tax year planning strategy.

You might want to consider:

• A Stocks & Shares ISA for long-term investing (remember that capital values can fall as well as rise)
• A Cash ISA for short-term savings
• Innovative finance ISA (allows you to invest in peer-to-peer lending or debt securities for potentially higher returns, but with greater risk.)
• Lifetime ISA (you can only put £4,000 a year into these and can only use the proceeds for buying a house or for retirement. These can only be opened if you are between 18 and 39.)
• Splitting your allowance between these options

Ask yourself: Have you used your full ISA allowance this year?

Even if you can’t invest the full £20,000, you may want to consider contributing something to ensure you don’t lose the allowance completely.

2. Maximise pension contributions

Pensions remain one of the most tax-efficient ways to save for retirement as contributions may reduce your taxable income but also attract tax relief.

For many, the pension annual allowance to receive tax relief is currently £60,000 or 100% of earnings (whichever is lower). If you earn less than £3,600 or have no earnings, you can still contribute up to £3,600 per year (including tax relief).

It’s also possible to carry forward unused allowances from the previous three tax years, provided you had a pension in place. Have you checked whether you’re sitting on unused pension allowance from previous years?

For higher earners in particular, reviewing pensions should be a core part of any end of year checklist. That’s because:

• They may be affected by the 60% tax trap if earning between £100,000 and £125,140
• They may be affected by the tapering of the annual pension allowance if their threshold income is over £200,000 (i.e. your income minus how much you pay into a pension) and if their 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.

As you can see, therefore, pension contribution rules can be complex, so advice is essential, especially given that legislation can change regularly too. For instance, it is likely that pensions will be subject to IHT in 2027.

3. Use your capital gains tax allowance

For the 2026/27 tax year, the capital gains tax (CGT) allowance is £3,000. So, if you sell assets that generate gains within this threshold, you won’t pay tax.

With this in mind, investors sometimes use the end of the tax year to:

• Realise gains within the allowance
• Rebalance their portfolios
• Offset gains with losses

For example, a professional with a £50,000 investment portfolio might sell a portion of it at a £3,000 gain, reinvest the proceeds and effectively reset their tax position. It’s a small step, but one that can add up over time when reviewed annually, in line with your end of financial year checklist.

4. Review dividend income

The dividend allowance is currently £500, meaning dividends above this level may be taxed depending on your income band. If you hold investments outside tax wrappers, reviewing dividend income should form part of your end of tax year planning.

One question worth asking yourself would be: could some of these investments sit inside an ISA or pension instead? It’s important to answer given that moving investments into tax-efficient wrappers if possible can reduce future tax liabilities.

5. Consider “Bed and ISA” strategies

A common strategy used in end of tax year planning is known as “Bed and ISA.”

This involves:

1. Selling investments held outside an ISA
2. Reinvesting them inside an ISA using your allowance

The goal is simple: protect future gains and income from tax. For investors with growing portfolios, this can be a powerful way to gradually move assets into tax-efficient structures.

6. Use family allowances

Tax planning isn’t just about individuals. Families have opportunities too.

Your end of tax year checklist might include:

• Marriage allowance transfers between spouses
• Contributions to a Junior ISA (up to £9,000 annually)
• Spousal asset transfers to use both partners’ allowances

If you’re married or have children it’s a good idea to check, therefore, if your partner and you are making full use of available tax allowances.

7. Review inheritance tax gifting

The annual gifting allowance is £3,000. Gifts within this threshold are immediately outside your estate for inheritance tax purposes. Over time, consistent gifting can significantly reduce potential inheritance tax (IHT) liabilities.

For example, a couple using their allowances could potentially gift £6,000 per year, gradually transferring wealth to the next generation. It may sound small, but it can be an important step in a comprehensive end of financial year checklist.

8. Check savings interest allowances

Most people benefit from a Personal Savings Allowance, which allows:

• £1,000 tax-free interest for basic-rate taxpayers
• £500 for higher-rate taxpayers

If your savings are generating significant interest, reviewing account structures as part of your end of tax year planning could help improve tax efficiency.

Common end-of-tax-year mistakes

Even experienced investors sometimes overlook simple steps.

Common issues include:

• Waiting until the last minute to review finances
• Forgetting about unused allowances
• Ignoring pension carry forward opportunities
• Leaving investments outside tax wrappers

In reality, a structured end of year checklist can prevent most of these problems.

Why tax planning should be part of your financial strategy

While this end of tax year checklist highlights useful opportunities, tax planning rarely works best in isolation. It’s most effective when integrated into a broader financial strategy that includes:

• Investment structuring
• Retirement planning
• Wealth management

As one First Wealth planner puts it: “Good tax planning isn’t about chasing allowances each March. It’s about structuring your finances so tax efficiency happens naturally year after year.”

For example, one senior professional recently reviewed their finances before the tax year end and:

• Used their full £20,000 ISA allowance
• Contributed £30,000 to their pension, reducing taxable income
• Realised £3,000 of capital gains within the exemption

The result? A meaningful reduction in their tax exposure while strengthening their long-term investment plan.

If you’d like help reviewing your end of tax year planning, our advisers can help you identify opportunities, avoid common pitfalls and build a strategy designed around your long-term goals. Get in touch today to speak with a financial planner and make sure you’re making the most of this year’s allowances before 5th April.

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.