Tax Planning 2025–26

26 Nov 2025

This is a helpful moment to pause and review. A short conversation now can prevent rushed decisions later, and it can ensure that the main allowances and reliefs are used in a sensible and balanced way.

Income and allowances
Clients may wish to check whether their personal allowance, savings allowance, and dividend allowance are fully used. Where income is close to the point at which the personal allowance tapers away, the timing of bonuses, dividends, or other variable income may be worth reviewing. Pension contributions can still be an effective method of reducing adjusted net income, as long as contribution limits are respected.

Pension planning
This is a good time to confirm pension contributions made during the year and to check whether unused annual allowances from the previous three years are available. Higher earners should take a moment to confirm whether the tapered allowance applies. Clients who have taken flexible pension withdrawals may also wish to confirm whether the reduced money purchase annual allowance now affects their planning.

Capital gains and investments
The current annual capital gains exemption continues to reduce, which means clients holding assets that were already under review may want to look at the timing of disposals. A managed approach to gains and losses can help spread tax liabilities across more than one year. Clients with investment portfolios may find it useful to review whether any losses can sensibly be realised to offset gains.

Business owners
Company directors can review the balance of salary and dividends for the year and consider whether it is appropriate to adjust this before 5 April. It is also worth checking eligibility for the employment allowance and confirming whether planned equipment or technology purchases qualify for available capital allowances. These steps can help shape the year end position in a measured way.

Gifting and family planning
Clients may also wish to consider small gifts, charitable donations, and the use of inheritance tax allowances. Reviewing these items now allows more time for thought and avoids last minute planning.

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