2025/26 Tax Planning is Underway

Every year brings new possibilities, and as we approach the start of the 2025/26 tax year, it's the perfect time to maximise your financial options and opportunities. Whether you're an investor or a saver, there are many tax benefits to take advantage of, and our team of experts is on hand to provide you with the information you need to make the best decisions for your finances.

What should my priorities be?

In 2025/2026, you can contribute a maximum of £20,000 across all your ISAs. This allowance applies to Cash ISAs, Stocks and Shares ISAs, Lifetime ISAs, and Innovative Finance ISAs. By investing in these, you won't pay income tax on the returns. Remember, you cannot roll over unused allowances into the next tax year.

Quick wins

There are cash efficiencies available to you if you know where to look. Consider the Lifetime Cash ISA as an example. It’s an excellent way to maximise allowances and bonuses and can be opened by anyone under the age of 40. By contributing up to £4,000 each tax year, the government provides savers with a 25% bonus, worth £1,000 annually.

A Lifetime ISA can only be used for saving towards either your first home (costing up to £450,000) or for retirement. If you withdraw some or all the cash before the age of 60 or don't use it for a first home or retirement, you will incur a 25% penalty on the withdrawal amount, effectively losing the government bonus.

Utilise your pension

Are you a higher-rate or additional-rate taxpayer? If so, you can claim the full amount of pension tax relief, which could be an additional 20% or 25%.

It’s in your hands

Whatever unfolds in the next tax year, remember that your financial decisions are in your hands - and ours. For tailored support in helping you reach your financial goals, please contact a financial adviser.

The checklist above is a downloadable pdf file, simply click on the image for the checklist to open on a new webpage.

 

An ISA is a medium- to long-term investment that aims to increase the value of your invested money for growth, income, or both.

The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

HM Revenue and Customs practices and the laws relating to taxation are complex and subject to individual circumstances and changes that cannot be foreseen.

 

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