Tax Year-End Planning 2026/27 — 10 Moves Before 5 April 2027

The UK tax year ends on 5 April 2027. Some allowances are use-it-or-lose-it, such as ISA subscriptions and the Capital Gains Tax annual exempt amount, while pension annual allowance can be carried forward for three previous tax years. The stakes are high: £20,000 of ISA shelter, a £60,000 pension annual allowance and a £3,000 CGT annual exempt amount are all on the table. Model your year-end position with the Tax Year-End Calculator→.

This guide runs through the ten highest-value moves for 2026/27, with the deadlines that decide each one.

The Use-It-or-Lose-It Allowances

The ISA allowance is the classic trap: £20,000 per person, no carry forward, and a couple who delay lose £40,000 of shelter in a single year. Flexible ISAs soften the blow — money withdrawn can be re-deposited within the same year without losing the allowance — so if you dipped in for a house deposit, top it back up before April. The CGT exemption is the second most common waste: with only £3,000 of tax-free gains left in 2026/27, anyone sitting on share profits should consider realising enough to use it, then rebuying a similar (not identical) fund to avoid the 30-day bed and breakfast rule.

Pension Contributions and Carry Forward

The £60,000 annual allowance applies to 2026/27, but the tax-relievable personal contribution limit is also constrained by the higher of 100% of UK taxable earnings or £3,600 and by the relevant pension rules. You can carry forward unused allowance from the previous three tax years — 2023/24, 2024/25 and 2025/26 — provided you were a member of a registered pension scheme in each year you draw on. A higher-rate taxpayer contributing £10,000 may receive relief worth £4,000 where the contribution and tax position support it; the result is not automatic for every taxpayer. Basic-rate relief at source is added to the pot automatically, while higher-rate and additional-rate relief may be claimed through the tax return. Watch the two traps: the tapered annual allowance can reduce the £60,000 where threshold income exceeds £200,000 and adjusted income exceeds £260,000, and the Money Purchase Annual Allowance of £10,000 applies after certain flexible access. Contributions must reach the scheme under its payment rules by 5 April to count for 2026/27.

Marriage Allowance and Gift Aid

If one spouse earns under £12,570 and the other is a basic-rate taxpayer, the lower earner can transfer £1,260 of unused personal allowance, saving £252 a year at 20% — and claims can be backdated four years, so a couple who never applied can collect around £1,000 in one go. Gift Aid works differently but is equally date-sensitive: a higher-rate taxpayer donating £100 nets the charity £125 and reclaims £25; the donation must be made before 5 April to count against 2026/27 income. Gift Aid also reduces adjusted net income, which matters twice over for families: it can pull you under the £100,000 personal allowance taper and under the £60,000 High Income Child Benefit Charge threshold, where the charge claws back 1% of Child Benefit for every £200 above £60,000 and wipes it out entirely at £80,000.

Year-End Strategies for Higher Earners

The 60% tax trap between £100,000 and £125,140 — where the personal allowance tapers at £1 for every £2 of income, creating an effective 60% marginal rate before other effects — is a common year-end planning issue, and a pension contribution may help. For investors, EIS and SEIS reliefs are generally claimed in the tax year the shares are issued, subject to scheme rules and valid certificates; some relief can be carried back. Business owners should also review capital allowances: the Annual Investment Allowance gives 100% relief on qualifying plant and machinery up to £1 million, subject to the accounting-period and qualifying-cost rules, so an expenditure date alone does not guarantee a 2026/27 deduction.

Savings and Dividend Allowances

The savings and dividend allowances are smaller but do not carry forward. Basic-rate taxpayers get £1,000 of tax-free savings interest (£500 for higher-rate, nothing for additional-rate), and everyone gets a £500 dividend allowance in 2026/27. If your savings pot generates £900 of interest and you are basic rate, no action is needed; but a couple with £15,000 in a high-interest account should consider beneficial ownership and the tax rules before changing arrangements. The starting rate for savings adds up to £5,000 of 0% interest for those with other income under £17,570. Dividends above the allowance are taxed at 10.75%, 35.75% or 39.35% in 2026/27, so a shareholder approaching the £500 line should consider whether an ISA transfer of shares before 5 April protects future years' growth as well as this year's income.

Year-End Loss Planning

Capital losses from previous years can be set against gains, and trading losses may be carried back against the previous year's profits subject to the loss-relief rules. The trick is timing: if you have both gains and losses, consider how much loss to claim so that the annual exempt amount is used efficiently — unused capital losses are not automatically wasted merely because there are no gains in the year. Capital-loss claims generally have a four-year time limit from the end of the tax year, so check the exact claim deadline for older losses. For business owners, the timing of expenditure and the accounting-period rules determine when an Annual Investment Allowance claim is available; do not assume that paying before 5 April alone pulls every deduction into 2026/27.

Gifting and Charity at Year End

Gift Aid is the year-end workhorse for donors: a £100 net donation costs a basic-rate taxpayer £80 after relief is handled at source, a higher-rate taxpayer £60 once the extra relief is claimed on the return, and an additional-rate taxpayer £55 where the taxpayer can use the relief. Making the donation before 5 April brings the relief into the current year, and because Gift Aid reduces adjusted net income, it can also help with the personal allowance taper above £100,000 or HICBC exposure above £60,000. For parents, the special £100 parental-gift rule can attribute a child’s income back to the parent; gifts and income-tax outcomes depend on the donor and circumstances. Inheritance planning also has a year-end angle: the £3,000 annual IHT exemption per donor resets on 5 April, although unused annual exemption can generally be carried forward for one tax year.

Do not create a tax bill to use an allowance

An allowance is not a reason to sell an investment, make a pension contribution or buy equipment without checking the underlying decision. A capital gain crystallised to use the annual exempt amount can still leave the investor with dealing costs, a changed asset allocation and a tax liability if the gain exceeds the available exemption. A pension contribution can be valuable but may lock away money, interact with the annual allowance or be made after the provider's cut-off. An ISA protects future income and gains, but transferring an asset may require a sale and can create a gain outside the ISA before the subscription is completed.

Use a three-part review for every proposed year-end action: what tax result is expected, what cash or investment exposure changes, and what happens if the transaction is not made. Keep the calculation tied to the correct tax year and record the payment, trade, share issue or equipment delivery date. “Before 5 April” is not a universal instruction: some rules use a payment date, some use a share issue date, some use the end of an accounting period and some allow carry forward or carry back under separate conditions.

Higher earners should also reconcile adjusted net income from all sources before choosing a strategy. Salary, bonus, benefits, savings interest, dividends, rental income, pension income and Gift Aid can affect different thresholds. A pension or Gift Aid estimate should be tested against the complete income picture, not just the payslip. If the proposed action changes employment, company profits, a trust, a close-company loan or a pension protection, obtain the relevant specialist calculation rather than relying on this checklist.

Keep a year-end evidence pack with payslips, pension statements, ISA confirmations, investment contract notes, Gift Aid receipts, company invoices and any election or claim. Review the pack after 5 April and again when the tax return or annual statement arrives. This avoids treating an intention to act as evidence that the allowance was actually used.

Frequently Asked Questions

Evidence and decision checks

A reliable tax year end planning 2026 27 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

Run your own numbers with the Tax Year-End Calculator→, then read the 60% Tax Trap guide or the Pension Annual Allowance guide for the details.

Official sources

• GOV.UK — Individual Savings Accounts
• GOV.UK — Withdrawing money from an ISA
• GOV.UK — Pension annual allowance
• GOV.UK — Capital Gains Tax rates and allowances
• GOV.UK — Income Tax rates and allowances
• GOV.UK — Adjusted net income
• GOV.UK — Marriage Allowance
• GOV.UK — Gift Aid
• GOV.UK — Annual Investment Allowance
• GOV.UK — EIS Income Tax relief
• GOV.UK — SEIS Income Tax and Capital Gains Tax reliefs