Financial planning UK: 10 essential checks before the tax year ends

Individual Savings Accounts (ISAs) remain a cornerstone of tax-efficient investment management for many UK-based investors. UK residents can contribute up to £20,000 per tax year, with all growth and income sheltered from income tax and capital gains tax.

Before the tax year ends, review how much of your allowance (and that of your partner, if you have one) has already been used and whether additional contributions are appropriate. Careful planning and switching from taxable accounts to an ISA can significantly improve long-term tax efficiency.

Retirement planning is more important than ever, and your pension is one of the most effective tools in your long-term financial planning toolbox. Contributions can be made up to £60,000 per year or one hundred per cent of earnings, whichever is lower, with the potential to carry forward unused allowances from previous years.

Optimising your pension contributions is an effective way to reduce income tax and build long-term security.

Capital gains tax (CGT) applies when assets are sold or transferred. The annual exemption is £3,000, and any unused allowance is lost at the end of the tax year.

Reviewing unrealised gains across your portfolio can help determine whether making disposals before 5th April is appropriate. Transfers between spouses or civil partners may also be considered, as these can help utilise both annual exemptions. In some cases, coordinating disposals with ISA or pension funding may support more efficient wealth management over time.

Where one partner earns below the personal allowance, part of that allowance may be transferred to the other partner. The transferable amount is £1,260, which can result in a tax saving of up to £252 per year.

Claims can also be backdated for up to four tax years, making this a valuable but often overlooked opportunity within household financial planning.

The dividend allowance is £500. Dividend income above this level is taxed according to your income band, which can create unexpected liabilities if not monitored carefully.

Reviewing dividend income alongside salary, pension income, and investments can help ensure your overall strategy remains efficient and aligned with your wider investment management objectives.

The amount of interest you can earn tax-free depends on your income band. Basic rate taxpayers can earn £1,000, higher rate taxpayers £500, and additional rate taxpayers receive no allowance.

Reviewing interest across all savings accounts can help avoid unexpected tax charges and may highlight where excess cash could be held more efficiently.

Inheritance tax planning is most effective when approached gradually. Individuals can gift up to £3,000 each tax year, with small gifts of £250 per recipient also permitted.

Regular gifting, supported by good record keeping, can reduce long-term inheritance tax exposure and form an important part of wider wealth protection planning.

Gift Aid increases the value of charitable donations and allows higher-rate taxpayers to reclaim additional tax relief through self-assessment.

Before the tax year ends, reviewing charitable giving ensures donations are structured efficiently and fully recognised for tax purposes.

Salary sacrifice arrangements can reduce income tax and National Insurance contributions. Common examples include pension contributions, electric vehicles, and Cycle to Work schemes.

Where available, these arrangements can support both tax efficiency and longer-term financial goals when used appropriately.

Year-end tax planning works best when decisions are coordinated and measured rather than taken in isolation and at the last minute. A short review well in advance of the end of the tax year can help confirm which allowances remain available, identify actions that fit your wider financial plan, give you time to action any decisions made, and avoid unnecessary complexity.

Taking a joined-up approach supports more effective wealth management and reduces the risk of last-minute decisions that may derail your long-term objectives.