Make the Most of the New Tax Year

A new tax year is a natural moment to take stock. Rather than waiting until next March to think about your finances, acting now gives your money more time to work and more options on the table.

Here are the key areas worth looking at as the 2026/27 tax year gets under way.

Use Your ISA Allowance Early

You can invest up to £20,000 into ISAs this tax year. The sooner you contribute, the longer your money has the potential to grow free of Income Tax and Capital Gains Tax. If you have children or grandchildren, Junior ISAs are also worth considering as a way to build tax-efficient savings for their future.

Check Your Pension Contributions

Pension contributions benefit from tax relief, which effectively means the government is topping up what you put in. Starting contributions early in the tax year smooths the cost across twelve months rather than rushing at year end. It is also worth checking whether salary sacrifice is available through your employer, currently one of the most tax-efficient ways to save, though the rules will become less generous from April 2029.

Review Your Capital Gains Position

If you hold investments outside of an ISA or pension, your annual Capital Gains Tax exemption can help reduce the tax due when you sell. Using it thoughtfully each year, rather than letting gains accumulate, can make a meaningful difference over time.

Think About Your Estate

Making use of your annual gifting allowances is a straightforward way to gradually reduce the value of your estate. With IHT rules set to change further from April 2027 — particularly around pensions — now is a sensible time to revisit your plans.

Small, proactive steps taken at the start of the tax year tend to create more flexibility than last-minute decisions. If you would like to talk through your options for 2026/27, we are happy to help.

Get in touch with the Prydis team at mail@prydis.com