7 Smart Things to Do Before the UK Tax Year Ends (5 April 2026) Last Chance
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The UK tax year ends on 5 April 2026, and once the clock hits midnight, many valuable tax allowances reset. If you don’t use them, you lose them.
Taking action now could save you hundreds or even thousands of pounds in tax.
Here are 7 smart things to do before the tax year deadline to make the most of your allowances.
1. Use Your £20,000 ISA Allowance
The Individual Savings Account (ISA) remains one of the most powerful tax-free tools available in the UK.
For the 2025/26 tax year, you can invest up to:
- £20,000 total across all ISAs
Types include:
- Cash ISA
- Stocks & Shares ISA
- Lifetime ISA
- Innovative Finance ISA
- Junior ISA (separate allowance)
Any interest, dividends, or capital gains inside an ISA are completely tax-free.
⚠️ Important upcoming change
From April 2027, the government plans to reduce the Cash ISA allowance to £12,000 for those under 65, while the overall £20,000 ISA limit remains.
This means the remaining £8,000 must be invested in Stocks & Shares or other ISA types.
Using your full allowance now protects more of your savings from future tax.
2. Realise Capital Gains Within Your Allowance
Everyone gets a £3,000 tax-free allowance for gains under Capital Gains Tax.
If you’ve made profits selling:
- shares
- funds
- crypto
- investment property (excluding main home)
you may be able to sell assets now to use this allowance before the tax year resets.
Many investors use a strategy called “bed and ISA” — selling investments and repurchasing them inside an ISA.
3. Use Your Dividend Allowance
If you hold investments outside an ISA or pension, dividends may be taxable.
For the 2025/26 tax year, the dividend allowance is £500.
If you’re close to the limit, consider:
- moving investments into an ISA
- transferring shares to a spouse to use their allowance
4. Boost Your Pension Contributions
Pensions are one of the most tax-efficient ways to save in the UK.
You can usually contribute up to:
- £60,000 per year (Annual Allowance)
- or 100% of your earnings
Contributions receive tax relief, meaning:
- The “20% Instant Top-up”: Basic rate taxpayers get 20% tax relief automatically. This means a £100 contribution only “costs” you £80, with the government making up the difference.
- Higher rate taxpayers may reclaim additional tax via self-assessment
Pensions can also reduce your taxable income, potentially bringing you below higher tax thresholds.
5. Use Your Marriage Allowance
If you’re married or in a civil partnership, you may qualify for Marriage Allowance.
This allows one partner to transfer £1,260 of their personal allowance to their spouse.
Potential saving:
- Up to £252 per year
Check eligibility through HM Revenue & Customs.
6. Use Your Gift Allowance
The UK allows you to gift money tax-free each year without it counting toward inheritance tax.
You can give:
- £3,000 per year tax-free
- unused allowance can sometimes roll over one year
This can be a simple way to reduce future inheritance tax liabilities.
7. Claim Tax Relief or Allowable Expenses
Before the tax year closes, check if you can claim:
- work-from-home tax relief
- uniform expenses
- professional membership fees
- mileage expenses
- charitable donations (Gift Aid)
Many people miss these simple claims each year.
You can submit claims through HM Revenue & Customs or your Self Assessment tax return.
Quick Tax-Year-End Checklist
Before 5 April 2026, consider:
✅ Maximise your ISA allowance
✅ Use your Capital Gains Tax allowance
✅ Take advantage of dividend allowances
✅ Top up your pension contributions
✅ Check Marriage Allowance eligibility
✅ Use your £3,000 gift allowance
✅ Claim any tax reliefs or expenses
💡 Bright Savings UK Tip
As an ex-banker, my goal is to help you optimize every pound. You can “stack” these tax savings with your other tools:
- Tax Saving: Move money into an ISA before April 5th.
- Platform Bonus: Open your new ISA platform to grab their latest sign-up offers.
- Cashback Layer: Check TopCashback before opening any new financial account to see if you can get an extra £20–£100 sign-up bonus on top of your tax savings. (New users can receive a welcome bonus, £15, when joining via referral [Link].)
Even small tax planning steps can add up to thousands of pounds saved over time. The key is acting before the tax year deadline.
Why Trust Bright Savings UK?
Bright Savings UK is run by a former banker with over 25 years of experience in the banking and financial services industry. Our goal is to help everyday people save smarter, with clear explanations and practical guidance.
Suggested Internal Links
- ISA Guide 2026: Use Your £20,000 Allowance Before It’s Gone [Link]
- Why Starting to Save at 18 Beats Saving at 30 [Link]
- The 50/30/20 Budget Rule Explained for UK Beginners [Link]
- Is TopCashback Worth It in 2026? A Beginner’s Guide for UK Savers [Link]
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