The end of the tax year always seems to sneak up on us. But with a little forward planning, you can give your finances a tidy up, make the most of your allowances, and head into the new tax year with confidence. Here’s how to make sure you’re not leaving money on the table, and that everything’s working as hard as it should for you.

1. Use Your ISA Allowance

Each year, you can save or invest up to £20,000 in an ISA, and any interest, dividends, or growth is tax-free. If you haven’t topped up your ISA yet (and it fits with your budget), now’s the time. Remember, what you don’t use from your allowance this year can’t be carried over.

Thinking about moving investments you already own into an ISA? A “Bed and ISA” is a standard process offered by many investment platforms: you sell some of your existing investments, and then use the proceeds to buy them back within your ISA. This can help ensure that future income, or growth on those investments is sheltered from tax. Just be aware – selling investments may trigger capital gains tax, so it’s worth checking how this fits with your tax allowances or speaking to your adviser if you’re unsure.

2. Check Your Pension Contributions

Paying into a pension remains one of the most tax-efficient ways to save for the future. For many people, the standard annual allowance for contribution is up to £60,000 (up to 100% of earnings). If you’ve not used your full pension allowance in the past three tax years, you may be able to “carry forward” unused amounts to top up this year’s contributions.

Pension rules can be complex, and there may be tax considerations or limits based on your individual circumstances. If you’re not sure how this applies to you, it’s worth getting tailored advice or speaking with a financial adviser.

3. Make the Most of Tax-Free Gains and Income

Everyone has a tax-free allowance for capital gains – known as the Capital Gains Tax (CGT) allowance. For the current tax year, this allowance is £3,000. If you have investments or assets that have increased in value, you can realise gains to this amount without paying tax.

In some cases, couples can reduce the total tax payable by making use of both their allowances. In the UK, assets can usually be transferred between spouses or civil partners without triggering a CGT bill. The can allow couples to maximise their combined CGT allowance if one partner has not used theirs. 

However, the rules around transferring assets and realising gains can be complex, and there may be other tax or legal implications depending on your circumstances.  Before making any changes, it’s a good idea to speak to a financial adviser to ensure this strategy is suitable for you.

4. Review Your Cash and Debts

The end of the tax year is a great time to check in on your finances. Review how much you hold in case, including savings accounts, and consider whether it’s working as hard as it could be – for example, are you getting a competitive interest rate. At the same time, if you have debts, such as credit cards or loans, it’s worth assessing whether paying some down could help reduce interest costs. 

Balancing cash savings with debt payments can help improve your overall financial wellbeing. 

5. Don’t Forget the Housekeeping

A quick spring-clean of your finances can save hassle later. Make sure you’re keeping up-to-date records for your investments, pensions and savings accounts. Double-check your nominated beneficiaries on pensions and life insurance policies, and update your details if your circumstances have changed. 

It can also be worth checking out your state pension forecast using the official government service. This helps you see how much you’re on track to receive, and whether you have any gaps in your National Insurance record that could be filled.

Taking a little time now to get organised means you’ll be ready for any tax deadlines or opportunities, and can give you peace of mind for the year ahead. If you’re not sure your arrangements are still suitable, or you notice anything you’re unsure about, consider seeking advice from an Independent financial adviser.

The end of the tax year is a great time to get your financial house in order. Not sure where to start, or want to chat through your options? Just get in touch – we’re here to help, whatever stage you’re at on your financial journey.

For friendly, no-nonsense guidance on your pensions, savings, and tax planning, get in touch with our team.

Celtic Financial Planning Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA) 809204.

The Financial Conduct Authority does not regulate tax advice.

This article is for information purposes only – should not be perceived as financial advice. We recommend you should always speak to a financial adviser before making any investment decisions.