The End of the Tax Year Is Nearly Here – A Good Time for a Quick Financial Check-Up

As the current tax year draws to a close on 5 April, many people start thinking about paperwork and deadlines. While that may not sound exciting, the end of the financial year can actually be a very useful opportunity to take stock of your personal affairs and make sure you are making the most of the allowances available to you. With a little planning now, you may be able to reduce your tax bill or strengthen your financial position for the year ahead.

Use your annual allowances

Many tax allowances operate on a “use it or lose it” basis. If they are not used before the end of the tax year, they may not be carried forward.

For example, you may wish to consider whether you have used your full ISA allowance for the year. Savings held within an ISA can grow free from income tax and capital gains tax, so ensuring your allowance is used can be beneficial over the long-term.

Similarly, some people may wish to review pension contributions before the year ends. Additional contributions can sometimes attract tax relief and help build retirement savings at the same time.

Review investments

The end of the tax year is also a sensible time to review investments and assets. If you hold shares or other investments outside an ISA, you may have a Capital Gains Tax allowance available. In some circumstances, selling or reorganising investments before the deadline may help you make use of that allowance.

Everyone’s circumstances are different, so professional advice can be particularly valuable when deciding whether to take action.

Consider gifts and estate planning

For those thinking about inheritance tax planning, the end of the tax year is a useful moment to consider whether any gifts could be made to use your annual gift exemptions.

Small steps taken over time can sometimes make a meaningful difference to the value of an estate. It can also be a good opportunity to review whether your Will still reflects your wishes and whether your estate planning arrangements remain appropriate.

Are your documents up to date?

Life changes quickly. Marriage, divorce, new children in the family, property purchases or business ventures can all affect your legal and financial position.

The end of the tax year can be a convenient reminder to review important documents such as:

• Your Will
• Lasting Powers of Attorney
• Property ownership arrangements
• Business agreements or shareholder arrangements

Making sure these are up-to-date can help avoid unwanted complications later.

Plan ahead

Finally, looking ahead to the new tax year can help you start on the right footing. Setting savings goals, reviewing budgets, or seeking advice about tax planning early in the year can make financial management much easier.

We are here to help

At Holley & Steer we regularly assist clients with wills, estate planning, property matters and wider personal legal issues. These often form an important part of a client’s overall financial planning.

A short conversation now could help put you in a stronger position for the year ahead. If you would like to review your arrangements or discuss any of the issues mentioned above, our team would be very happy to help. Please ring us on 01278 788991 to make an appointment with the Private Client team.