Tax Planning

In the 26 November 2025 Budget many tax increases were announced or confirmed, but some of these aren't getting put into place for several years. Knowing how and when tax rates change can be highly beneficial to you and your wallet!

February is an ideal time to review your tax affairs, since there can often be the chance to make use of planning opportunities before the end of the tax year, the 5th April.

It is usually worthwhile to top up your ISAs annually, if you're financially capable. The Chancellor announced the cash ISA limit is reducing from £20,000 p.a. to £12,000 (except for over-65s) but this won't take effect until April 2027.

Other ways to stay tax efficient include topping up your pension, making disposals that utilise your £3,000 CGT exemption or making gifts to utilise annual Inheritance Tax (IHT) exemptions.

It is also important to review any investments that you hold. It might be more tax-efficient to transfer ownership to a spouse, so you can both use up your personal allowance and lower tax bands. Now is a good time to get all paperwork and documentation in order, even if you don't currently have plans to sell.

Checking your wills annually to ensure they still meet your loved ones needs is always helpful. A lot can happen to one's personal circumstances and asset values within a year. It is particularly important to do this if you own a trading business, due to the restriction on IHT business reliefs coming in this April.

For the self employed and landlords, the biggest relevant tax change is the phasing in of Making Tax Digital for Income Tax (MTD IT), from 6th April 2026. This will involve quarterly reporting of income and expenditure for income tax purposes to HMRC via MTD-compatible software and a finalisation statement to be sent after year end. Those with a qualifying income (above £50,000) must enroll from 6th April 2026.

For those trading through companies, the biggest relevant tax change is the Dividend Tax increase from 8.75% to 10.75% for basic rate taxpayers (earnings up to £50,270), from 6th April 2026. If you think you need to consider how this change will effect you please contact us.

You can find more information at the bottom of this page - Taxes