By Samuel Mather-Holgate

As 5 April approaches, the end of the tax year is one of the most important planning moments in the calendar.

Every year, valuable tax allowances are lost.
>Every year, investment portfolios drift.
>Every year, families miss opportunities to reduce inheritance tax exposure.

But 2026 is different.

With pensions due to fall inside inheritance tax from April 2027, Business Property Relief restrictions tightening, VCT tax relief reducing and frozen tax thresholds quietly increasing the tax burden, proactive financial advice has never mattered more.

If you’re looking for a financial adviser in Swindon, Bristol or Cirencester, this is exactly the moment structured planning can add significant value.

Here is your complete tax year end checklist.

Key Tax Year End Takeaways

• Use ISA and pension allowances before 5 April

• Consider pension carry forward from previous years

• Review drawdown income levels

• Model inheritance tax exposure ahead of 2027 pension changes

• Review Business Property Relief exposure

• Check State Pension forecast and NI record

• Rebalance investments and review protection

1️⃣ Maximise “Use It or Lose It” Allowances

Many allowances reset on 6 April and cannot be carried forward.

ISA Allowance – £20,000

• Shelter savings and investments from income and capital gains tax.

• With dividend and savings tax rates rising, ISA use is increasingly valuable.

• Consider Bed & ISA strategies to move taxable investments inside wrappers.

Pension Annual Allowance – Up to £60,000

• Contributions receive tax relief at your marginal rate.

• High earners should check tapering rules.

• Employer contributions remain highly tax efficient.

But this is only the start…

2️⃣ Pension Carry Forward: The Most Underused Strategy

Many professionals and business owners in Swindon and Cirencester can use unused pension allowances from the previous three tax years.

This can:

• Reduce higher or additional rate tax

• Offset bonuses or dividend spikes

• Dramatically improve long-term retirement planning

With pensions facing inheritance tax changes from April 2027, deciding whether to maximise funding now requires careful modelling.

This is not just about tax relief. It is about sequencing assets intelligently.

3️⃣ Drawdown Review: Is Your Income Still Sustainable?

If you are in pension drawdown, this is critical.

Questions to review:

• Has portfolio performance supported your withdrawal rate?

• Are you increasing IHT exposure unnecessarily?

• Should income be adjusted ahead of April?

• Are beneficiary nominations up to date?

With pensions expected to fall inside IHT from April 2027, many retirement strategies need recalibrating.

Historically, pensions were left untouched as an estate planning tool. That assumption is changing.

Now is the time to model scenarios properly.

4️⃣ Inheritance Tax: The Rules Are Shifting

Several developments mean IHT planning can no longer be delayed.

Key Issues

• Nil-rate bands frozen until 2030

• Rising property values pushing more estates above thresholds

• BPR and APR restrictions

• Pension funds moving inside estates from April 2027

Many families in Swindon and Cirencester now face inheritance tax without realising it.

Tax year end is the perfect time to review:

• Gifting strategies

• Use of trusts

• BPR-qualifying investments

• Whole-of-estate modelling

• Intergenerational wealth planning

Ignoring this area is no longer safe.

5️⃣ Business Owners: Strategic Planning Before 5 April

If you run a business, tax year end presents major opportunities.

Consider:

• Employer pension contributions (corporation tax efficient)

• Dividend timing before rate increases

• Director pension funding

• Salary sacrifice implications

• Relevant life policies

• Shareholder protection structures

Business owners often have the greatest flexibility — but also the most complexity.

Structured advice ensures planning is coordinated rather than reactive.

6️⃣ Capital Gains Tax Planning

The CGT annual exemption is now significantly lower than it once was.

This means:

• Strategic realisation of gains is essential

• Spousal transfers can optimise allowances

• Bed & ISA strategies may be appropriate

• Loss harvesting can offset gains

With property income and dividend taxation rising in future years, reviewing investment structure now can prevent avoidable tax later.

7️⃣ Venture Capital Trusts (VCTs)

Upfront income tax relief on VCTs reduces from 30% to 20% from April 2026.

For higher earners:

• Consider timing of subscriptions

• Review risk exposure

• Assess liquidity needs

• Evaluate portfolio concentration

VCTs still have a role — but the economics are shifting.

8️⃣ State Pension & National Insurance Record

Often overlooked.

Before year end:

• Check your State Pension forecast

• Identify gaps in National Insurance record

• Consider voluntary contributions where appropriate

For many, small actions here create guaranteed long-term benefit.

9️⃣ Portfolio Rebalancing & Risk Review

Market volatility over the past 12 months means portfolios often drift from intended risk levels.

Tax year end is ideal to:

• Rebalance

• Review asset allocation

• Adjust for life stage changes

• Ensure investments align with long-term objectives

Investment discipline is often more important than product selection.

🔟 Protection & Estate Structure

A proper annual review should also assess:

• Life cover adequacy

• Relevant life plans for business owners

• Lasting Powers of Attorney

• Will structures

• Beneficiary nominations

Tax planning without structural estate planning leaves gaps.

Why Tax Year End Planning Matters More in 2026

The combination of:

• Frozen thresholds

• Pension IHT changes

• BPR restrictions

• Dividend tax rises

• VCT relief reductions

means passive planning is no longer enough.

Now is the moment when experienced financial advice truly earns its keep.

The Value of a Financial Adviser in Swindon, Bristol, Birmingham or Cirencester

Tax year end planning is not about ticking boxes.

It is about:

• Coordinating pensions, investments and estate planning

• Sequencing assets intelligently

• Minimising unnecessary tax

• Protecting long-term wealth

If you are reviewing your position before 5 April, this is the time to do it properly.

BOOK A CALL BACK now or CONTACT US to discuss your planning opportunities now and for next year.