Now that the New Year rush has passed, March is often the first real opportunity to step back and look strategically at your tax position before the year end on 5 April 2026. With several rule changes arriving shortly after, a little forward planning now can make a meaningful difference over the coming months.

Here are some of the areas worth thinking about as we head towards April.

A final window for using allowances

The weeks leading up to 5 April are your last chance to make use of this year’s reliefs. Reviewing ISAs, pensions, dividends, capital gains and capital allowances now can help ensure no valuable allowances go unused before the new tax year begins.

Pensions as a planning tool

Making additional pension contributions before 6 April 2026 can be highly tax-efficient, particularly for higher earners, as you get tax relief on contributions, subject to annual limits.

Preparing for higher dividend taxes

Dividend tax rates are scheduled to rise by 2 percentage points from 6 April 2026, for basic and higher rate taxpayers meaning the timing of dividends and shareholder remuneration strategies may be worth reviewing.

Investment timing for businesses

Businesses planning capital expenditure should consider the timing carefully, particularly where the accounting year-ends fall in March or April. The Annual Investment Allowance of £1 million is available for expenditure on qualifying new and used assets made before the end of the accounting period. In addition, limited companies can fully expense expenditure on new equipment with no limit on the amount claimed. These allowances represent generous relief on qualifying purchases. The timing of expenditure should therefore be considered carefully to maximise allowances.

Reviewing potential capital disposals

If you have not yet used your £3,000 Capital Gains Tax annual exemption for 2025/26, it may be worth considering whether any planned disposals should take place before the tax year closes. Also, the CGT tax rate for gains qualifying for Business Asset Disposal Relief and Investors Relief will increase by 4% to 18% from 5 April 2026 so the timing of gains should be considered carefully.

Checking your State Pension record

To qualify for the full state pension you need 35 years of National Insurance Contributions. Those with gaps in their National Insurance history may still be able to improve their future State Pension by making voluntary Class 3 contributions, subject to eligibility and time limits.

A shift in Inheritance Tax relief limits

From April 2026, the government had initially proposed a cap of £1 million on Agricultural Property Relief and Business Property Relief. This has now been revised to £2.5 million. The government has also confirmed that unused allowances can be transferred between spouses and civil partners, meaning that a couple can pass on £5 million of qualifying assets free of IHT.

Digital tax reporting is almost here

Making Tax Digital for Income Tax (“MTD”) will begin from April 2026 for sole traders and landlords with turnover above £50,000 in the tax year 2024/25 . These taxpayers should register with HMRC for MTD by 6th April 2026. Affected taxpayers should take action now to register and implement digital records.

Changes to homeworking relief

Tax relief for working from home will largely end from April 2026. For 2025/26, claims remain available only where homeworking is a contractual requirement.

Get in Touch

If you would like to review your tax position before the new tax year, get in touch with us at [email protected] or call 01628 623444. We would be happy to discuss the best approach for you and your business.