05 Mar 2026

2025/26 year end tax planning guide

The run up to the end of the tax year on 5 April 2026 is a good time to check that your family and business finances are arranged in the best way possible.

In this year end tax planning guide, we look at useful ways to take advantage of available tax reliefs and planning opportunities.

At PKF Francis Clark, we work together across accounting, tax and financial planning to give you clear, joined‑up advice that supports your wider goals.

Please do not hesitate to get in touch if you would like to discuss your situation with us.

Key topical issues

Tax rules continue to evolve and several important changes will shape planning for 2025/26 and beyond. Key areas include:

  • The effect of fiscal drag with the continuing freezing of the personal allowance and key tax thresholds until 5 April 2031
  • An increase in the rate of tax on dividend income from 6 April 2026
  • Measures impacting those with property income, including:
    • Making tax digital for income tax (from April 2026 for many landlords)
    • The continuing fall-out from the abolition of the furnished holiday letting rules (abolished from April 2025)
    • The forthcoming introduction of a separate rate of tax for property income from April 2027
    • Changes to ISA rules, including new cash ISA limits from 6 April 2027 and a freeze on overall ISA limits until 5 April 2031
    • Inheritance tax on unused pension funds and death benefits from 6 April 2027
    • Major reforms to agricultural property relief (APR) and business property relief (BPR), including the new £2.5m lifetime limit, applying from 6 April 2026

This guide explains these changes and outlines practical actions you may wish to take before the end of the tax year.

Key tax updates and year end considerations

Several important tax changes are shaping year‑end planning this time around. Frozen thresholds, higher dividend tax from April 2026, new rules for property income, and upcoming shifts to ISAs and pension‑related IHT all mean that many people will feel the impact over the next two years and beyond. This update highlights the main changes on the horizon and what they could mean for your personal and business decisions as 5 April approaches.

Explore the key changes

Income, savings and dividend planning for individuals and families

Rising tax pressures make it more important to use the full range of allowances available to you and your household. From income allocation between spouses to smarter use of savings and dividend allowances, there are several practical ways to keep your tax bill in check. This section explores how families, couples and individuals can make day‑to‑day planning more efficient.

Explore your planning options

Capital gains, inheritance tax and estate planning updates

Changes to capital taxes remain a major theme this year. From the lower CGT annual exemption to the rising BADR rate in 2026 and the far‑reaching reform of APR and BPR, the landscape is shifting quickly. There are also new rules coming on the treatment of pension death benefits for IHT. This summary explores what’s changing and what it might mean for your future plans.

View detailed CGT and IHT insights

Pensions, child benefits and tax‑efficient savings strategies

Pension contributions continue to offer some of the most valuable tax benefits, especially when they help keep adjusted net income below key thresholds. Changes to child benefit rules, the tapered annual allowance, and new requirements around claiming relief all play a part in shaping your choices for the year ahead. This update looks at how pensions and other savings products can support longer‑term planning.

View pensions and savings insights

Using investments and allowances to maximise tax efficiency before 5 April 2026

As the end of the tax year gets closer, it’s worth checking which allowances you’ve used and which might be lost if not taken now. ISAs, pensions, capital allowances and various investment reliefs can all play a role in reducing your tax exposure. This round‑up looks at ways to make the most of the current rules before they reset on 6 April.

Explore investment allowances

Employer year end compliance reporting

As the tax year ends, employers are required to complete several employment tax reporting and payment obligations. Year‑end compliance for employee benefits and expenses can be particularly complex, with multiple reports, deadlines and payment requirements to manage.

What do employers need to report?

Year end planning is a chance to look at your tax position alongside your wider personal and business goals. Taking a little time now can help you use key allowances, avoid unnecessary charges and prepare for the changes coming in April.

At PKF Francis Clark, our tax specialists work closely with our financial planning team to give you clear, joined‑up advice. This means we can look at your income, investments, pensions and long‑term plans together.

If you’d like to discuss your situation or explore your options, please get in touch.

Talk to our team to discuss your year end planning

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