Your End-of-Year Financial Checklist: 5 Smart Money Moves to Make Before 2026
A UK financial adviser's guide to the 5 smart money moves you should make before the end of the year, covering ISAs, pensions, tax planning, and more.
As autumn begins, many of us are in a "back to school" mindset, focused on getting organised and planning ahead. While you might be thinking about the months leading up to Christmas, now is also the perfect time to conduct a crucial review of your finances to ensure you're making the most of your money before the tax year ends next April.
Making a few smart moves now can save you a significant amount in tax, boost your investments, and put you on a stronger footing for the year ahead. At Plouta, our mission is to empower you with the knowledge to build a secure financial future. As a financial adviser, these are the five key areas I urge every client to review before the end of the year.
What You’ll Learn in This Guide:
The "Use It or Lose It" Allowances: Why you need to act on your ISA allowance now.
The Pension Power Play: How to get a major boost from the taxman on your retirement savings.
Smart Gifting: How to pass on wealth to your family completely tax-free.
Managing Investment Profits: The importance of using your Capital Gains Tax allowance.
Getting Ahead of the Tax Return: A timely reminder to avoid January stress.
1. Maximise Your ISA Allowance
The Individual Savings Account (ISA) is the cornerstone of tax-efficient saving and investing in the UK.
The Rule: Every UK adult has an annual ISA allowance, which for the 2025/26 tax year is £20,000. This is a "use it or lose it" allowance – if you don't use it by midnight on 5th April 2026, it's gone forever.
Why Act Now? Spreading your contributions throughout the year is often more manageable than rushing to find a lump sum in March. By reviewing your position in autumn, you have plenty of time to set up a regular payment or make contributions to ensure you use as much of this valuable allowance as possible.
The Benefit: All growth and income within an ISA is completely free from UK tax. For a higher-rate taxpayer, this means avoiding 33.75% tax on dividends and 40% tax on savings interest.
Your Action Plan:
Check how much of your £20,000 allowance you have used so far this tax year.
If you have spare cash, consider topping up your ISA.
If you don't have a lump sum, set up a monthly direct debit to your ISA to ensure you're consistently using your allowance.
2. Supercharge Your Pension
Your pension is the most powerful tool for long-term, tax-efficient saving, especially for higher earners. Autumn is the perfect time to review your contributions.
The Rule: You can typically contribute up to 100% of your earnings into a pension each year, up to a maximum Annual Allowance of £60,000.
The "Magic" of Tax Relief: When you contribute to a pension, you get tax relief at your highest rate of income tax. For a 40% taxpayer, a £10,000 contribution effectively only costs you £6,000.
Why Act Now? If you are nearing the end of the calendar year and expect a bonus, planning to contribute a portion of it to your pension is one of the most effective tax-saving moves you can make. It reduces your income tax bill for the year and supercharges your retirement pot.
Your Action Plan:
Review your total pension contributions for the tax year so far.
Consider increasing your regular contributions if you can afford to.
If you're a higher earner or have received a bonus, speak to a financial adviser about using "carry forward" to contribute any unused allowances from the previous three tax years.
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3. Use Your Tax-Free Gift Allowances
If you plan to give financial gifts to family, doing so as part of a structured plan can prevent your generosity from creating an Inheritance Tax (IHT) bill down the line.
The Rule: Everyone has an annual IHT exemption of £3,000. You can give away this much each tax year, and it is immediately considered outside of your estate for IHT purposes.
Why Act Now? This allowance also has a "carry forward" rule, but only for one year. If you didn't use your £3,000 allowance in the 2024/25 tax year, you could combine it with this year's allowance and gift up to £6,000 before 6th April 2026. Acting now ensures you don't lose the unused allowance from the previous year.
Other Exemptions: Don't forget you can also make unlimited "small gifts" of up to £250 per person, per tax year.
Your Action Plan:
Consider using your annual £3,000 exemption.
If you didn't use last year's, plan to use that too before the tax year ends.
Keep a clear record of any gifts you make.
4. Review Your Capital Gains
For those with investments outside of an ISA or pension, managing Capital Gains Tax (CGT) is crucial.
The Rule: You have an annual CGT allowance of £3,000. This is the amount of profit you can make from selling assets (like shares or funds) each tax year before any tax is due.
Why Act Now? Like the ISA allowance, your CGT allowance is "use it or lose it." If you have investments with significant gains, you could consider selling a portion before the end of the tax year to crystallise a profit of up to £3,000, tax-free.
Your Action Plan (for experienced investors):
Review your non-ISA investment portfolio.
Consider selling assets to realise gains up to the £3,000 allowance.
Explore strategies like "Bed and Spouse" (transferring an asset to your partner to use their CGT allowance) or "Bed and ISA" (selling an investment to realise the gain and then immediately buying it back within your ISA wrapper to shelter it from future tax).
5. Prepare for the Self-Assessment Deadline
While the online filing deadline of 31st January 2026 might seem far away, getting your paperwork in order now can save a huge amount of stress.
The Rule: If you are required to file a Self Assessment tax return (e.g., you're self-employed, a high earner, or have property income), you must report all your relevant income for the tax year that ended on 5th April 2025.
Why Act Now? Autumn is the perfect time to start gathering your documents – P60s, bank interest statements, dividend vouchers, and records of expenses. Dealing with it now means you avoid the January rush, have time to ask questions, and can plan for your tax bill.
Your Action Plan:
Create a folder (digital or physical) and start gathering all the necessary paperwork.
If you use an accountant, contact them now to get booked in, rather than waiting until they are at their busiest.
If you're a higher-rate taxpayer, use this opportunity to ensure you are claiming all the tax reliefs you are entitled to, such as for your personal pension contributions.
Conclusion: Small Actions, Big Impact
Financial planning isn't a one-off event; it's a series of conscious, well-timed decisions. By taking a few hours this autumn to review these five key areas, you can make a significant and positive impact on your financial health. Maximising your allowances and planning ahead are not just administrative tasks; they are powerful acts of building and protecting your wealth, moving you closer to your goal of financial freedom.
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Disclaimer: This guide provides general information and is for informational and educational purposes only. It does not constitute financial advice. The value of investments can go down as well as up. Tax rules, allowances, and rates depend on individual circumstances and are subject to change. Always seek professional, regulated financial advice tailored to your specific situation before making any financial decisions.