The run-up to 5 April is a useful window to review these areas calmly and to make the most of any allowances or exemptions before they are reset on 6 April.
ISAs as a flexible resource
Individual Savings Accounts (ISAs) remain highly relevant in later life. Withdrawals are tax-free, helping retirees manage income without pushing themselves into higher tax bands.
Using the £20,000 ISA allowance during the 2025/26 tax year allows savings and investments to grow without dividend, savings or Capital Gains Tax (CGT) implications. For some, gradually moving taxable investments into ISAs can reduce future tax on income streams.
Many retirees enjoy passing on wealth during their lifetime rather than solely through their estate. The Junior ISA (JISA) allows £9,000 annually to be contributed into a tax-efficient vehicle for a child – useful for education or first homes.
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.
Managing investment tax sensibly
Dividend and Personal Savings Allowances have been reduced over recent years, meaning more retirees are now paying tax on investment income. Reviewing how assets are structured can help preserve income and reduce admin.
For those with general investment accounts, using the £3,000 CGT allowance each year can help prevent gains building up into larger future tax liabilities.
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.
Estate and legacy planning
You can make gifts worth up to £3,000 in each tax year which will be exempt from 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.
Certain gifts don’t use up this annual exemption but there is still no IHT due on them e.g. wedding gifts of up to £5,000 for a child, £2,500 for a grandchild (or great grandchild) and £1,000 to anyone else. Individual gifts worth up to £250 per recipient per tax year are also IHT free. Under current HMRC rules, gifts outside the above categories normally cease to count for IHT purposes upon the donor’s death if they live for at least seven years after making the gift – known as Potentially Exempt Transfers (PETs).
Reviewing Wills, gifting strategies, beneficiary nominations and how assets pass to the next generation can reduce stress for loved ones and provide clarity now.
Keeping things simple
After decades of saving, it’s common to have multiple accounts and products. Consolidating where appropriate can improve clarity and make administration easier without sacrificing flexibility.
A reassuring perspective
The end of the tax year provides a moment to check that your finances are aligned with your priorities – not just on paper, but in how they support your wellbeing, your lifestyle and your family. If you’d like help simplifying, structuring or sense-checking your arrangements before 5 April 2026, your Finli planner is here to support you with care and clarity.
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.