Make the most of your ISA allowance from day one

Every tax year, you get a fresh ISA allowance of £20,000. That resets on 6 April, and the sooner you put it to work, the longer your money has to grow.

If you want a Cash ISA and a Stocks and Shares ISA, you're free to contribute to both. That flexibility means you can spread your savings in a way that suits your goals.

If you have children, you can also put up to £9,000 into a Junior ISA for each child under 18. It's a simple, tax-efficient way to build a nest egg for them over time.

Top up your pension (and benefit from tax relief!)

Pension contributions are one of the most tax-efficient things you can do with your money. When you pay into a pension, that money comes out of your income before tax is calculated. So not only are you saving for the future, you're also reducing your tax bill today.

Basic rate taxpayers receive 20% tax relief automatically. If you're a higher or additional rate taxpayer, you can claim back even more through your self-assessment return.

The annual pension allowance sits at £60,000, so there's significant room to contribute if you're in a position to do so. And if you start early in the tax year, your money benefits from a full 12 months of potential growth which, over time, makes a meaningful difference.

Review your tax position

A number of changes have come into effect with the new tax year, and it's well worth taking stock of how they might affect you.

The CGT annual exemption remains at £3,000. What has changed are the rates. The main CGT rates remain 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers. With the exemption already at such a modest level, making the most of it through careful timing of any disposals, investments, second properties, or other assets, is more important than ever. Planning ahead, rather than acting in a rush, gives you the best chance of managing your liability well.

For business owners, one of the most significant shifts this year concerns Business Asset Disposal Relief (BADR). Following the increase to 14% in April 2025, the CGT rate for qualifying disposals under BADR has risen again to 18% from 6 April 2026.  To put that in perspective, on a qualifying gain of £1 million, the tax liability has risen from £100,000 at the pre-2025 rate of 10% to £180,000 at the new rate.  If you're thinking about selling a business, taking professional advice before you act is essential.

Finally, if you receive dividend income, particularly relevant for company directors and shareholders, the basic rate of dividend tax rises from 8.75% to 10.75%, and the higher rate from 33.75% to 35.75%. With the tax-free dividend allowance still sitting at just £500, it's worth reviewing how you're drawing income from your business.

Check your National Insurance record

This one often gets overlooked, but it can have a significant impact on your retirement income.

The full new State Pension is worth around £11,500 a year. To receive the full amount, you need 35 qualifying years of National Insurance contributions. If there are gaps in your record, you can pay to fill them. The tax year is a good time to check where you stand and take action if needed.

Gift Aid and charitable giving

If you give to charity and pay tax, Gift Aid can be worth using. For every £1 you donate, the charity can claim an extra 25p from HMRC. If you're a higher-rate taxpayer, you can also claim the difference between the basic and higher rate of tax on your donation through your tax return.

It's a straightforward way to make your giving go further and reduce your tax liability at the same time.

Set your financial goals for the year

More than any single allowance or product, the most valuable thing you can do at the start of a new tax year is take a step back and think about what you actually want.

Do you want to retire earlier? Build a bigger safety net? Pay less tax? Fund a major life goal such as a home move, school fees, a once-in-a-lifetime trip?

Having a clear sense of direction makes every financial decision easier. It stops you from making reactive choices and helps you stay on track when things feel uncertain.

We're here to help

Navigating all of this on your own isn't easy. That's exactly where we come in.

Whether it's reviewing your pension contributions, making the most of your ISA allowance, or working through a tax planning strategy, we're here to make it straightforward and stress-free.

If you'd like to talk through your options for the year ahead, get in touch. There's no better time to start than now.

Oil prices have risen by around 11% since the weekend, while UK natural gas prices have increased by roughly two thirds. This is largely due to disruption around the Strait of Hormuz, a key shipping route through which about a fifth of global oil and gas passes.

Energy prices matter because they influence the wider economy. Higher fuel costs increase the price of producing and transporting goods and can act like a tax on both businesses and households.

However, it is important to keep the recent moves in perspective. Even after the increase, gas prices remain well below the levels seen following Russia’s invasion of Ukraine. In addition, the UK energy price cap has already been set for the coming quarter, meaning household bills would not be affected by the current situation until at least July.

Much will depend on how long the current tensions last. If the conflict proves short lived, energy prices could quickly fall back and the impact on markets may be limited. If it drags on, markets may experience periods of volatility and interest rate cuts could be delayed.

Rather than trying to predict geopolitical events, our investment approach focuses on building well diversified portfolios that can perform across different economic environments.

This includes exposure to a range of sectors, regions and currencies. For example, defensive sectors such as healthcare and consumer staples have held up well recently, while energy and resource companies have benefited from rising commodity prices.

Although markets have seen modest declines in recent days, moves of this size are not unusual. Historically, geopolitical events rarely have a lasting impact on long term market returns.

For long term investors, staying disciplined and maintaining a diversified portfolio remains the most important principle.

Your life insurance policy is often one of your most valuable assets. By placing it in trust, you can have more control over who receives the money, how quickly it’s paid, and how much tax is due. Let’s take a closer look at what this means and whether it could be right for you.

What does it mean to put life insurance in trust?

Life insurance pays out a lump sum if you pass away during the term of your policy. Normally, that money would form part of your estate.

A trust is a legal arrangement that allows the policy to be held separately from your estate. You appoint one or more trustees, often family members, friends, or a solicitor, to look after the policy. They are responsible for making sure the money goes to the people you’ve chosen, known as the beneficiaries.

One of the biggest benefits of a trust is that the money can usually be paid out more quickly and with less paperwork, as it doesn’t usually need to go through probate. This can be especially helpful if you’re not married or in a civil partnership. It can also help keep the payout out of the hands of the taxman, meaning more of the money goes to your loved ones.

How does it work?

There are two main types of trust.

· A bare trust means the trustees hold the money for the beneficiaries you name, who receive it outright when they reach 18 (or 16 in Scotland).

· A discretionary trust gives the trustees more flexibility. They can decide how much each beneficiary receives, when they receive it, and under what conditions.

There are also other options, such as gift trusts or split trusts, which may be suitable if your family situation or policy type is more complex. Once the trust is set up, the trustees legally own the policy. They must keep the trust deed safe, as they will need it to make a claim on the policy when the time comes.

It’s important to remember that you, as the policyholder, remain responsible for paying the premiums. Many people use a solicitor or financial adviser to ensure the trust wording is clear and accurate.

Setting up a trust

Putting a life insurance policy into trust is usually straightforward. Many insurers offer this as an option when you first take out a policy, often at no extra cost. You can also put an existing policy into trust later on, though this may involve some advice from a financial adviser or solicitor and could incur a small fee. The right timing and approach will depend on your circumstances.

Things to consider

While trusts have clear benefits, there are some downsides. The decision is usually irreversible, so once a policy is in trust, you can’t take it back. You also give up some control, as decisions about the policy must be agreed by the trustees rather than just yourself. Choosing trustees you trust is therefore very important.

If your policy isn’t in trust, the payout forms part of your estate and is distributed under your will. This usually means it will go through probate, which can take weeks or even months. There may also be inheritance tax to consider. In the 2025–26 tax year, everyone has a £325,000 inheritance tax allowance, with an additional £175,000 allowance if you leave your home to a direct descendant. Anything above these thresholds is typically taxed at 40%, which could reduce what your family receives.

Is putting life insurance in trust right for you?

Every family is different. A trust can offer speed, clarity, and peace of mind, but it’s not the right answer for everyone. Speaking to a financial adviser can help you understand your options and make a decision that fits your goals, your family, and your wider financial plan.

We’re here to help answer any questions and guide you through the process, making it as simple and stress-free as possible.

Every individual has a personal allowance, and for couples who are married or in a civil partnership, there may be additional opportunities.

Using the Marriage Allowance or transferring assets between spouses can sometimes improve overall household tax efficiency.

A review of how income and assets are structured can help ensure allowances aren’t going to waste.

Check your tax code

Your tax code determines how much income tax is taken from your salary or pension. You can find your tax code on your payslip, your P60 or P45 and the HMRC app or online account. If something doesn’t look right, it’s worth contacting HMRC. You may be entitled to a refund, and claims can usually be made for overpaid tax going back up to four years.

Use your gifting allowance

Most gifts are free from inheritance tax if you survive for seven years after making them. In addition, you can give away up to £3,000 per year using your annual gifting allowance. Any unused allowance can be carried forward, but only for one tax year. Used regularly, gifting can be a simple and effective part of longer-term estate planning.

Consider charitable giving

Charitable donations can be both meaningful and tax-efficient. Donations made through Gift Aid allow charities to reclaim basic-rate tax, while higher-rate taxpayers can claim additional relief through their tax return. If you’re planning to give to charity, doing so before the end of the tax year ensures the relief can be claimed sooner.

Business owners and self-employed individuals

If you run a business or are self-employed, year-end planning is particularly important.

Before the tax year ends, it’s worth reviewing things such as:

· Allowable expenses

· Profits and income levels

· Pension contributions made personally or through the business

In some cases, capital expenditure or employer pension contributions can reduce taxable profits. Professional advice should always be sought before making business decisions of this nature.

Bringing it all together

Year-end planning doesn’t need to feel overwhelming. A review now can help you make informed decisions, avoid missed allowances and move forward with confidence.

If you have questions or would like help understanding what applies to you, speak to your Financial Adviser or book a no-obligation consultation to talk through your options.

Planning ahead today can help you enjoy more freedom tomorrow.

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