There's no time like the present

Your start of the tax year checklist

Here’s a handy checklist of things to start thinking about now. 

1. Use your £20,000 ISA allowance.
2. Make the most of your £60,000 pension allowance.
3. Utilise your £3,000 Capital Gains Tax allowance.
4. Be aware of your £500 dividend allowance.
5. Get up to speed with Inheritance Tax exemptions.
6. Don’t forget your £3,000 gift allowance.

If you’d like to find out more about any of these allowances and exemptions, take a look at our article.

Unwrap your ISA allowance

You currently have an annual ISA allowance of £20,000 and any income or capital growth is free from UK Income Tax and Capital Gains Tax. You can put that £20,000 into a Stocks and Shares ISA, a Cash ISA, or a mix of both. However, from April 2027 the government is planning to reduce the Cash ISA allowance for under 65s to £12,000, so if you haven’t previously considered investing in a Stocks and Shares ISA, now might be a good time to do so. It’s a mid to long term investment (ideally 5+ years) that has the potential to outperform Cash ISAs.

If you have eligible children who are under 18 and living in the UK, you can also invest up to £9,000 per child in a Junior ISA each tax year. Just be aware that the child can’t have a Child Trust Fund as well as a Junior ISA.

Take a peek at your pension

Most people aged under 75 can contribute to their pension up to the level of their earnings, capped at £60,000 each tax year, and receive tax relief. For every £80 you invest the government will add £20. If you pay higher rates of Income Tax, you can claim additional tax relief directly from HMRC. As well as boosting your retirement income, pensions are an effective way of sheltering any growth from UK Income Tax and Capital Gains Tax.

From age 55 (57 from April 2028) you can take up to 25% of your pension as a tax-free lump sum or a series of tax-free payments. In most cases, the maximum tax-free cash you can take across all your pensions is £268,275, unless you’ve registered for protection.

Explore our ISAs

Our Stocks and Shares ISAs enable you to:

• Choose how your money is invested by selecting funds to match your appetite for risk.
• Invest in a way that suits you, with regular monthly payments from £50 and/or a lump sum from £1,000.
• Start, stop, and restart regular payments or change the amount at any time.

Explore our pension

Our Select Pension Plan enables you to:

• Choose how your money is invested by selecting funds to match your appetite for risk.
• Switch from one fund to another or change where your future payments are invested.
• Invest in a way that suits you, with regular monthly payments from £50 and/or a lump sum from £1,000.
• Start, stop, and restart regular payments or change the amount at any time.
• Track the performance of your investment through the 'My Investments' online platform.