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Finance, Careers & Personal Development Newspaper


Act before 5 April: Tax year-end decisions that could save you thousands


Jason Coppard, Financial Planning Manager at Lumin Wealth, explains


January sees many people making changes, such as a new fitness re- gime or taking up a new hobby. With tax-year-end fast approaching, how- ever, it’s also a crucial time to add fi- nances to your to-do list. Experience has shown that the earlier you start tax planning, the more secure your financial future becomes. Here are five key financial tips to consider as you enter 2026:


1. FIND OUT HOW MUCH YOU CAN CONTRIBUTE TO PENSION PLAN(S) Did you know that, in some circum- stances, you could make a substantial lump-sum contribution into a pension and benefit from tax relief (either per- sonal income tax or corporation tax, depending on the source of the contri- bution)? While the standard annual allowance is £60,000 (2025/26), you may be able to contribute significantly more by using unused allowances from the previous three tax years, provided you have sufficient earnings. Higher and additional rate taxpayers should also remember to claim any extra tax relief via self-assessment.


2. YOUR ISA ALLOWANCE: USE IT OR LOSE IT Each adult can add up to £20,000 per tax year to an Individual Savings Account (ISA), with any unused allow- ance lost if not used. You can contrib- ute up to £9,000, meaning that a family of four could shelter up to £58,000 annually from income and Capital Gains Tax (CGT). Unlike pensions, which are typically ring-fenced until age 55/57, many ISAs can be accessed flexibly. Tis makes ISAs a powerful tool for medium- to long-term goals, and even more valuable consider- ing higher tax rates on dividend and savings income from April 2026 and April 2027.


With the tax year-end fast approaching, now is the perfect time to fine-tune your finances and ensure optimal tax efficiency. Call 03300 564 446 or visit luminwealth.co.uk to learn more and speak with an expert.


Experience has shown that the earlier you start tax planning, the more secure your financial future becomes


3. PAY LESS TAX BY HARVESTING YOUR CAPITAL GAINS EVERY YEAR Up to £3,000 capital gains are tax-free in each tax year, but this allowance is lost if you don’t use it. A couple could,


in theory, realise combined


gains of almost £120,000 over 20 years without paying CGT. Selling a few investments to realise gains within that limit can be an easy, pain-free way to bank profits tax-free.


4. CHECK YOUR OPTIONS WHEN RENEWING AN EXPIRING MORTGAGE DEAL If a mortgage rate comes to end, you can get a new deal up to six months in advance. Consider loan-to-value thresholds (including an up-to-date valuation), the mortgage type (fixed versus variable) and finding the cheapest lender. Once a new deal has been secured, check if the rate can be improved with the lender before the mortgage starts, as market partici- pants generally expect a falling inter- est rate environment.


5. PLAN AHEAD FOR PENSIONS FALLING INTO THE IHT NET FROM APRIL 2027 Unused pension assets will be liable to Inheritance Tax (IHT) from 6 April 2027, unless they are left to a spouse or civil partner. With beneficiaries


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facing potential tax rates of over 60% on inherited pensions, many are being prompted to rethink their strategy and how to protect their legacy. Potential IHT liabilities are ex- acerbated for estates worth more than £2m due to the tapering and eventual loss of IHT allowance for the main residence. Estate planning options may include the retirement drawdown strategy (pension versus non-pension assets), tax-free pension cash, gifting, and insurance cover.


For more information, contact the Lumin Wealth offices in London: 020 3988 7788, St Albans: 01727 893 333, Bishop’s Stortford: 01279 701 317, Reading: 01189 797 596 or Beaconsfield: 01494 816 858


Email info@luminwealth.co.uk or visit luminwealth.co.uk


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