With the 2025/26 UK tax year ending on 5 April 2026, now’s the time to act on key allowances for ISAs, pensions, and more—especially if investments and retirement are your focus. At 1st Financial Foundations, we help you maximise these opportunities without the hype.
Why Act Before 5 April?
Allowances like ISAs and pensions reset annually and don’t carry over, so unused portions vanish. Frozen thresholds mean rising incomes could push you into higher tax bands, making tax wrappers essential for growth-focused investors and retirees. Key changes loom from April 2026, like carried interest taxed as income, but core individual reliefs hold steady for now.
Maximise Your £20,000 ISA Allowance
Contribute up to £20,000 across Stocks & Shares ISAs, Cash ISAs, or Lifetime ISAs (£4,000 max, counting towards the total) for tax-free growth on investments. Ideal for retirement portfolios, this shields dividends (£500 allowance outside) and capital gains from tax. Bedford rails or equity funds? Shift non-wrapped assets in via ‘Bed & ISA’ before deadline.
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ISA Type
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2025/26 Allowance
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Best For
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Stocks & Shares
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Up to £20,000
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Investment growth
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Lifetime (18-39)
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£4,000 (within total)
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Retirement bonus
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Junior
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£9,000 per child
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Family planning
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Boost Pensions with £60,000 Annual Allowance
The standard pension annual allowance remains £60,000 for 2025/26, covering contributions with tax relief (e.g., 40% for higher earners). High earners (£200k+ threshold income) face tapering down to £10,000; check yours to avoid charges. Carry forward unused allowances from the past three years for retirement top-ups.
Check Capital Gains and Other Allowances
Use your £3,000 CGT allowance on gains before tax at 18-24%; realise losses to offset. Dividend allowance stays at £500, personal savings allowance at £1,000 (basic rate)/£500 (higher). For IHT planning, gift £3,000 annually (carry forward one year) plus £250 small gifts.
Quick Checklist for Investments & Retirement
• Review portfolios: Harvest CGT losses, bed & ISA/pension winners.
• Pension health check: Confirm contributions, nominate beneficiaries, claim relief.
• Spouse/civil partner top-ups: Marriage Allowance transfer if eligible.
• Update details: Ensure pension providers have current info.
• Model scenarios: Project tapered allowances or MPAA (£10,000 if flexibly accessed).
Don’t leave money on the table—contact us today for personalised advice tailored to your investment and retirement goals. Book a no-obligation review before 5 April 2026.
This article provides general information only and does not constitute financial advice. For personalised guidance based on your specific circumstances, please contact our office to arrange a consultation. Learn more
