Wealth manager Evelyn Partners has set out eight key financial checks ahead of April 6
Households with pensions, savings and investments are being warned to take action before the tax year ends – or risk losing out on important allowances and reliefs. Wealth manager Evelyn Partners has outlined eight financial checks ahead of April 6.
They are cautioning that frozen thresholds and upcoming inheritance tax (IHT) changes mean more families are facing larger tax bills. Emma Sterland, chief financial planning officer at Evelyn Partners, explained: “As the 2025/26 tax year draws to a close, it’s important to reflect on whether current allowances and reliefs are being well utilised.
“But it is also necessary to assess whether your financial and wealth strategy is fit for purpose in the context of changes to taxation that are coming in both this and next April.”
She continued: “In addition to changes in taxation, the overall increase in the tax burden due to frozen allowances and reliefs demands that all families make sure they are making the most of their earnings, savings and investments.”
Below are the key danger points – and opportunities – before the tax year concludes.
1. IHT gifting rules tighten
From April 6, a £2.5million ceiling will be imposed on 100% business and agricultural property relief. From April 2027, unused pension pots will also be incorporated into estates for IHT purposes.
Ms Sterland explained: “One of the most straightforward ways to make sure your loved ones benefit from your wealth is to gift assets during lifetime.”
The £3,000 annual gifting allowance – £6,000 for couples – can be carried forward one year if unused, potentially permitting up to £12,000 per couple to be transferred before April 5.
She continued: “Gifts you make to other people are generally not subject to IHT unless you die within seven years, and many families have decided to start that clock ticking.”
2. Watch the higher-rate tax cliff
Numerous retirees accessing private pensions risk being pushed into the 40% higher-rate bracket at £50,270 – or even the severe 60% effective rate above £100,000 where the personal allowance disappears.
Ms Sterland stated: “If possible, keeping one’s taxable income the right side of the next tax band can make sense.”
She cautioned that some savers withdrawing more from pensions ahead of the 2027 IHT change must balance the immediate income tax cost against a potential future inheritance tax bill.
3. The 60% tax trap
Brits earning between £100,000 and £125,140 are subject to an effective marginal rate of up to 60–62%. Ms Sterland explained: “There are some relatively straightforward steps you can take to reduce taxable income.”
Options include contributing to pensions, utilising salary sacrifice, making charitable donations under Gift Aid, or transferring income-generating assets between spouses.
4. Use your £60,000 pension allowance
The annual pension allowance currently sits at £60,000, though high earners may see this reduced to as low as £10,000. Ms Sterland cautioned: “There’s no guarantee that the higher AA or carry forward will be around forever, so it makes sense to prioritise pension saving in order to keep more earned income and efficiently build wealth.”
Unused allowances from the past three years may be accessible through carry-forward provisions.
5. Couples should split savings smartly
Basic-rate taxpayers can receive £1,000 annually in savings interest tax-free; higher-rate taxpayers £500. Additional-rate taxpayers receive no personal savings allowance.
Only £500 of dividend income is tax-free per person. Ms Sterland advised that spouses should ensure assets are owned by whichever partner pays the lower tax rate, noting that “holding a large amount of cash savings is potentially unrewarding, unless protected from tax in a cash ISA.”
6. Make the most of your £3,000 CGT allowance
The annual capital gains tax exemption has been cut to £3,000. With CGT now levied at 18% and 24% on most assets, investors may wish to “crystallise” gains before April 5 to utilise the allowance – or realise losses to offset against gains.
Assets can be transferred between spouses tax-free to double up exemptions.
7. ISA deadline approaching
The £20,000 annual ISA allowance cannot be carried forward. Ms Sterland said: “Annual ISA allowances cannot be carried forward if not used.”
From April 2027, the cash ISA allowance for the under-65s will drop to £12,000, whilst the overall £20,000 cap remains frozen until 2030/31. Junior ISAs permit up to £9,000 a year to be invested tax-free for children.
8. Business owners confront IHT shake-up
From April 6, the 100% rate of business and agricultural relief will only apply to the first £2.5million of qualifying assets.
Ms Sterland warned: “In some cases an unexpectedly large IHT bill can jeopardise the future of a firm and the jobs it provides if the liquid assets are not there to meet the expense.”
She urged affected owners to urgently review wills and succession plans.
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