The period leading up to 5 April provides a valuable opportunity to review these questions and to make the most of any allowances or exemptions before they are reset on 6 April.
ISAs – a flexible income tool
Individual Savings Accounts (ISAs) remain attractive well beyond working life. Future withdrawals are tax-free, making them a useful complement to taxable pension income in retirement.
Using the £20,000 ISA allowance during the 2025/26 tax year can strengthen the tax-efficient portion of your portfolio before decumulation begins. Growth and income within an ISA are sheltered from tax, helping to preserve long-term flexibility.
There has been much discussion about ISA reform recently, but no structural changes will impact savers before 5 April 2026. In short: the existing rules still apply and clarity remains.
Pension contributions – still valuable for some
Many people continue contributing to pensions in their 50s and early 60s, either because they enjoy their work or because they want to boost future financial resilience. Contributions still benefit from tax relief and employer contributions remain efficient.
Even if retirement plans are forming, reviewing contributions, investment choices and beneficiary nominations helps ensure clarity as you transition to decumulation.
Investment tax planning before retirement
For those holding investments in taxable accounts, the annual £3,000 Capital Gains Tax (CGT) allowance remains useful. Gradual use of this allowance can help reposition assets into tax-efficient wrappers (e.g. ISAs) before income withdrawals begin.
If your assets are owned jointly with another person, you can use both allowances, which can effectively double the amount you can make before CGT is due. If you are married or in a civil partnership, you are free to transfer assets to each other without any CGT being charged.
Dividend and savings income allowances have been reduced in recent times, so more people are now paying tax on investment income than before. Reviewing how assets are held and how future income will be drawn can reduce future tax drag.
Supporting family across generations
You may be considering having conversations about helping children or grandchildren. The Junior ISA (JISA), with its £9,000 allowance, provides a structured way to pass money down gradually.
Estate planning also becomes more relevant: Wills, death benefit nominations, gifting allowances and structuring of assets can reduce future complexity and provide meaningful peace of mind.
Remember – you can make gifts worth up to £3,000 in each tax year. These gifts will be exempt from Inheritance Tax (IHT) on your death, even if you die within seven years. You can carry forward any unused part of the £3,000 exemption to the following year but if you don’t use it in that year, the exemption will expire.
A calm moment to prepare
The end of the tax year is not about rushing. It’s a natural annual checkpoint before retirement begins in earnest. If you’d like support fine-tuning tax efficiency, income strategy or legacy planning before 5 April, your Finli planner is here to help you move forward with clarity and confidence.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.