30 March 2026
If you are covering how people can make the most of allowances before tax year end, prepare for next year’s rules and get ahead of major reforms coming in 2027, please see the following comment from Rachael Griffin, tax and financial planning expert at Quilter:
“With the tax year ending on Sunday 5 April, anyone needing to make changes will in practice need to act by Friday 3 April. Time is tighter than usual this year given the bank holiday weekend, so it is sensible to check now that you are using your allowances before they reset.
“This is a year to use the allowances you can, but the bigger task is getting ready for the major structural shifts arriving in 2027. Cash ISA limits will be cut for under‑65s and savings income will be taxed more heavily, while unused pensions will fall within IHT, so households need to think beyond this week’s deadline and prepare for a very different tax landscape.”
Prepare for this tax year end
Use your ISA allowance before Sunday’s deadline
“You can put up to £20,000 into an ISA each tax year, but once the deadline passes, any unused allowance is lost for good. With the tax year ending on Sunday, this is a final chance to shelter savings or investments from tax before the allowance resets. It’s also worth checking flexible ISAs carefully – if you’ve taken money out during the year, it must be paid back in before 5 April if you want to avoid dipping into next year’s allowance instead.”
Manage CGT before allowances reset
“Capital Gains Tax allowances are now much smaller, so careful planning is more important than ever. With just a £3,000 exemption remaining, selling investments in stages across different tax years can help keep gains below the threshold. Couples should also remember that assets can be transferred between spouses without triggering CGT, allowing gains to be shared and allowances used more efficiently. Any unused capital losses from previous years should also be checked, as these can be set against gains to reduce the bill.”
Top up your pension where appropriate
“Pensions remain one of the most tax efficient savings vehicles available, with contributions eligible for income tax relief up to £60,000 a year or 100% of earnings, whichever is lower. Those who haven’t used their full allowance in recent years may be able to boost contributions further using carry forward rules. For many, a last‑minute pension top‑up can reduce the current tax bill while also strengthening long‑term retirement plans.”
Use gifting allowances to manage IHT exposure
“Each individual can give away £3,000 a year inheritance tax free, or a combined £6,000 between couples. If last year’s allowance wasn’t used, it can be carried forward for one year, meaning you may be able to gift as much as £12,000 as a couple. This can help reduce your estate for IHT purposes while also allowing you to witness your loved ones benefit from the gifts you pass on.”
Prepare for digital reporting
“From 6 April 2026, self‑employed workers and landlords earning over £50,000 are required to keep digital records and submit quarterly updates under new reporting rules. Anyone affected should make sure their accounts are in order now, as while there are no penalties for missing a quarterly update deadline for the 2026/27 tax year, adopting good habits early on will make the new system far easier to manage and reduce the risk of errors or penalties later.”
Make the most of next tax year
Review family business and farm succession plans
“The 2026 changes to agricultural and business reliefs were originally expected to be far more restrictive, and the eventual package was notably watered down following intense protests and widespread concern from farming and rural business groups. Even so, the new limits will still narrow access to full relief, so families should check whether long‑standing assumptions about exemption still hold. For many, a brief review of ownership structures and the timing of transfers can help avoid unexpected IHT exposure once the revised rules take effect.”
Frozen thresholds mean wrappers and ownership matter more
“With income tax and CGT thresholds frozen, early use of ISA and pension allowances will continue to play a central role in reducing tax drag. Couples should also think about how assets are split between them, as moving savings or investments to a partner on a lower marginal tax rate can help make better use of their thresholds. Even small adjustments to who holds which assets can make a meaningful difference.”
Plan for a very different tax year in 2027
Cash ISA limits will be cut sharply
“From April 2027, the annual Cash ISA limit for adults under 65 will fall from £20,000 to £12,000, while over‑65s will retain the full £20,000 limit. The overall ISA allowance remains £20,000, but younger savers will need to turn to stocks and shares ISAs to use the full amount.”
Savings tax rates will rise
“From April 2027, tax on savings income will face a 2% increase under changes announced at last year’s budget. Given frozen allowances such as the Personal Savings Allowance, more people are likely to need to pay tax on their savings interest and will need to be aware of the increased rates. Utilising your full ISA allowance wherever possible will shield as much of your hard earned savings from tax as possible.”
Unused pensions will fall within IHT
“From April 2027, most unused pension pots will be counted as part of the estate for inheritance tax purposes. This marks a significant shift in how pensions are treated and is prompting many people to think more carefully about how and when they access their pension savings. In some cases, drawing income earlier or reshaping retirement plans may help manage future tax exposure. Wherever possible, you should seek professional financial advice to ensure you are making the most tax efficient decisions possible.
“What’s more, as pensions become part of the estate, probate is expected to become more complex. In response, many households may wish to consider consolidating accounts, updating wills and putting lasting powers of attorney in place. These practical steps can help reduce delays and administrative burdens for loved ones later on, at a time when clarity and simplicity matter most.”
