26 Mar New Tax Year, New Opportunities

The days are getting longer, the Sun has begun to make an appearance, Easter Eggs have been on the supermarket shelves for 6 weeks, so this must mean that the end of the tax year and start of another beckons.

This is an ideal time to remind our clients of the tax efficient allowances that are available to them and their family.

Individual Savings Accounts (ISA)
The current limit remains at £20,000 per tax year into one or multiple accounts. Any growth achieved will not be subject to income or capital gains tax and for many this remains an integral part of a tax efficient investment strategy.

Do you have a flexible Stocks and Shares ISA that allows withdrawals to be paid back in within the same financial year? If not discuss this with your Advisor.

As announced in the last budget, from April 2027, the amount that can be placed into a Cash ISA for the under 65’s will be reduced to £12,000, which may trigger a change to the way that you use your allowance.

Junior ISA (JISA)
This is an account that can be opened for children under the age of 16 with an annual limit of £9,000. Neither income or capital gains tax are charged on any growth achieved and can be used as a foundation for university fees, first property purchase etc.

Lifetime ISA (LISA)
This account is designed to assist anyone who is looking to plan for their first property purchase and/or retirement and can be opened between the ages of 18 and 39. The maximum subscription each tax year is £4,000 which then receives a bonus of 25% from the Government, turning a £4,000 investment into £5,000 each year, before any potential investment growth.

A new first time buyer ISA is anticipated in April 2028, and we will share details once full information has been received.

Pensions
If you are employed it is likely that you are a member of your Workplace Pension scheme. We would certainly encourage remaining within or joining your Company scheme as your employer will also contribute at least 3% of your salary, in essence “free money”.

Changes to company pension contributions made through salary sacrifice are planned for April 2029, your Advisor will be able to discuss the possible impact to you nearer the time.

If you do not have access to a company funded scheme or have surplus capital or income available after contributing to your workplace scheme, pension contributions still represent an extremely tax efficient method of investing towards your future

If you own your own business, you may be able to fund your pension through your company, extracting profits tax efficiently by reducing the amount of corporation tax that you pay.

You can discuss the maximum amount that you could place into a pension and receive tax relief at your highest marginal rate with your Adviser.

The options above often form the basis of a tax efficient investment portfolio. However if all available allowances are being used and appropriate funding of the above tax wrappers has already been made, alternative investments may result in tax being paid.

Talk to your advisor to explore all investments options available and you will be made fully aware of the possible tax implications of any recommended investment solution.

The payment of tax, after using the traditional tax efficient methods referred to above, should be viewed as a positive as it means that you’ve made a return on your invested funds!!

​​Risk Warnings

• The value of an investment and the income from it could go down as well as up.
• All investing is subject to risk, including the possible loss of the money you invest.
• Past performance is not a reliable indicator of future results.
• Diversification does not ensure a profit or protect against a loss.
• Please remember that all investments involve some risk. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income
• This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice as at 21st January 2026. You are recommended to seek competent professional advice before taking any action.