As the 5 April tax deadline approaches, now is the time to review your finances and take advantage of available tax-saving opportunities. 

A little planning now can help you keep more of your hard-earned money while ensuring you’re in the best position for the next financial year. 

Here are some key areas to focus on before the tax year ends.

1. Make the Most of Your ISA

Individual Savings Accounts (ISAs) are one of the most tax-efficient ways to save or invest, as any interest or returns are completely free from tax. Since your annual allowance doesn’t roll over, it’s worth using as much of it as possible before the deadline. Whether you prefer the security of a Cash ISA or the growth potential of a Stocks & Shares ISA, ensuring your money is working for you tax-free is always a smart move.

2. Top Up Your Pension Contributions

Pensions offer one of the best ways to save for retirement while benefiting from generous tax relief. By increasing your contributions before the end of the tax year, you could reduce your taxable income while securing your financial future. If you haven’t made full use of your annual contribution limit, now is a good time to review your pension plan.

For those on higher incomes, pension contributions can also help lower your taxable income, potentially bringing you into a lower tax bracket. If you’re unsure how much you can contribute without exceeding limits, speaking with a financial adviser is recommended.

3. Make Use of Your Capital Gains Allowance

Selling investments, property, or other assets can lead to Capital Gains Tax (CGT), but there are ways to minimise your bill. The tax-free allowance resets each year, so if you’re planning to sell assets, doing so before the deadline could mean paying less tax. If you have losses from previous investments, these can also be offset against gains to reduce your liability.

Couples can further benefit by transferring assets between them tax-free, ensuring they both make the most of their allowances.

4. Check Your Dividend and Savings Income

If you receive income from dividends or savings, now is a good time to assess how much tax you might owe. There are tax-free allowances available, but these have been gradually reducing in recent years. If your income is approaching or exceeding the limit, shifting some funds into an ISA can help keep more of your money out of the taxman’s reach.

5. Consider Charitable Donations

Giving to charity is not only a great way to support causes you care about, but it can also offer tax relief. Under the Gift Aid scheme, charities can claim an additional percentage on top of your donation, and if you’re a higher-rate taxpayer, you can claim additional relief on your self-assessment tax return. If you’re planning to donate, doing so before the tax year ends ensures you receive the tax benefit sooner.

6. Plan for Inheritance Tax (IHT)

Inheritance Tax (IHT) planning is often overlooked, but making use of tax-free gifting allowances can help reduce future liabilities. Certain amounts can be gifted each year without incurring tax, and if you didn’t use last year’s allowance, some of it may still be available. For those considering passing wealth to family or loved ones, early planning can make a big difference.

Final Thought: Always Seek Advice from a Trusted Professional

Navigating tax rules can be complicated, and while these tips can help reduce your tax bill, everyone’s situation is different. A qualified tax adviser or financial planner can provide tailored guidance based on your personal circumstances.

Taking action before the tax year ends can put you in a stronger financial position while ensuring you make the most of the available tax-saving opportunities. Whether it’s optimising your savings, reducing tax on investments, or planning for the future, a little preparation now can pay off in the long run.

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)