The new tax year is here on 6th April. And while it might not feel like the most exciting milestone on the calendar, it really is one of the best moments to take stock of where you are financially, and where you want to be. It’s a chance to set yourself up well before the year runs away with you, and there are a few key things it is worth thinking about right now.
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.
