As the UK tax year draws to a close on 5 April 2026, the window to optimise your allowances and structure your wealth efficiently is narrowing. For high-net-worth individuals, business owners and internationally mobile families, the weeks before year-end present important opportunities — not only to reduce tax exposure, but to strengthen long-term wealth strategy.
At Blacktower, our approach is not about last-minute transactions. It is about integrating tax planning into a broader wealth management framework — ensuring that capital is positioned effectively for growth, protection and intergenerational transfer.
Below, we outline the key deadlines and wealth planning considerations before the end of the 2025/26 tax year.
1. Maximise Your ISA Allowance
The annual ISA allowance remains £20,000 per individual for the 2025/26 tax year.
Unused allowances cannot be carried forward, meaning that any portion not invested before 5 April is permanently lost.
From a wealth management perspective, ISAs play an important role in:
- Tax-efficient portfolio growth
- Shielding income and capital gains from UK tax
- Building long-term flexibility for retirement planning
- Creating tax-efficient pools of capital for later-life or legacy planning
For couples, combining allowances allows up to £40,000 per tax year to be sheltered.
For internationally mobile clients, careful consideration is required around UK residency status and future tax exposure, particularly if relocation is planned.
2. Pension Contributions: Planning Within Allowances
Pensions remain one of the most powerful long-term planning vehicles available — but they must be used strategically.
Key considerations before 5 April include:
- Reviewing unused annual allowances (subject to eligibility and tapering rules)
- Ensuring contributions align with income levels
- Considering carry forward opportunities from the previous three tax years
- Assessing interaction with Lifetime Allowance reforms and future benefit access
For business owners and directors, employer contributions can form part of a tax-efficient remuneration strategy.
However, pension planning must be integrated with retirement objectives, liquidity needs and potential overseas considerations. For clients living abroad or planning to relocate, cross-border pension treatment can materially affect outcomes.
3. Capital Gains Tax (CGT) Management
With reduced annual CGT exemptions now firmly embedded in UK tax policy, proactive planning is increasingly important.
Before year-end, clients should consider:
- Realising gains within the annual exempt amount
- Offsetting gains with realised losses
- Rebalancing concentrated holdings
- Reviewing investment structures for long-term efficiency
For those holding property, business assets or large investment portfolios, timing disposals correctly can significantly reduce overall tax exposure.
CGT strategy should always sit within broader asset allocation decisions — not drive them.
4. Dividend and Income Planning
Dividend allowances remain limited, meaning income generated from company shares or investment portfolios may now fall into taxable bands more quickly.
Business owners may wish to:
- Review dividend timing before 5 April
- Assess salary versus dividend balance
- Consider pension funding via corporate contributions
From an investment standpoint, portfolio structure — income versus accumulation strategies — should align with your personal tax position and long-term objectives.
5. Inheritance Tax and Gifting Opportunities
The end of the tax year is also a natural review point for estate planning.
Key opportunities include:
- Using the annual £3,000 gift exemption
- Reviewing regular gifts out of surplus income
- Considering spousal transfers
- Assessing trust structures where appropriate
With continued discussion around future inheritance tax reforms, early planning remains prudent — particularly for families with cross-border assets or beneficiaries in multiple jurisdictions.
Wealth transfer is not simply about tax mitigation; it is about preserving family capital and values across generations.
6. Business Owners: Preparing for 2026 and Beyond
For entrepreneurs and company directors, year-end planning extends beyond personal allowances.
This is a key time to review:
- Business relief qualification
- Shareholding structures
- Succession planning
- Liquidity strategies ahead of potential sale or exit
Aligning corporate and personal wealth strategy is critical — especially where significant value is held within private companies.
7. International Considerations
Many of our clients are internationally mobile — living abroad, planning relocation, or holding assets across multiple jurisdictions.
Tax year-end planning may interact with:
- Double tax treaties
- Residency status changes
- Overseas pension structures
- Currency exposure
- Offshore investment bonds
Timing becomes particularly important where a move is planned before or after 5 April 2026.
Integrated advice is essential in these circumstances.
A Strategic Approach to Year-End Planning
At Blacktower Financial Management, tax planning is not about isolated transactions executed in March. It forms part of a disciplined wealth management strategy designed to:
- Protect capital
- Enhance tax efficiency
- Support retirement objectives
- Facilitate intergenerational wealth transfer
- Maintain flexibility in uncertain market environments
The final weeks before 5 April should act as a checkpoint — not a panic point.
Act Before 5 April 2026
The UK tax year closes at midnight on 5 April 2026. After this date, many allowances reset — and unused opportunities are lost.
If you have not reviewed your position for the 2025/26 tax year, now is the time to do so.
A structured review can provide clarity, confidence and alignment between your tax position and long-term wealth objectives.
Important Notice
Tax treatment depends on individual circumstances and may change in the future. The value of investments can fall as well as rise, and you may not get back the amount originally invested. Pension and investment suitability should always be assessed within a holistic financial planning framework.
To discuss your end-of-tax-year strategy, speak with your Blacktower adviser or arrange a wealth review consultation.
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This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Blacktower Financial Management is authorised and regulated by the Financial Conduct Authority