Pre year end Tax Planning

As we approach the tax year end on 5 April 2026, it is time to consider any tax planning opportunities:

• As dividend rates are due to rise by 2% for basic rate and higher rate taxpayers, is there scope for businesses owners to draw additional dividends before the end of tax year?

• Consider whether pension contributions could be made to reduce net adjusted earnings below certain tax thresholds, i.e. the higher rate tax threshold of £50,270 or below £100,000 to retain the full personal allowance.

• Make use of the annual ISA allowance of £20,000, where money can be invested as cash savings and/or in stocks and shares, with any savings or investment income received being tax-free.

• As a couple, are your savings split between you so you can both take advantage of the annual personal savings allowance (£1,000 for basic rate taxpayers or £500 for higher rate taxpayers).

• If your concern is leaving inheritance tax liabilities, have you utilised the annual gift exemption of £3,000 and the small gift allowances of £250 per person?

Clients should get in touch with one of the team here should they require further guidance on any of the above tax planning tips.