The end of the tax year explained: why the 5th April matters
Your one-stop shop for understanding everything you need to know about the end of the tax year.
What the end of the tax year actually means
The UK tax year runs from 6 April to 5 April the following year. Many of the most valuable savings and investing benefits are tied to this annual cycle, including ISA allowances and pension tax relief. When the tax year ends, those allowances reset – and your unused allowances don’t roll over.
Why tax-free allowances are worth paying attention to
Tax-free allowances exist to reduce the tax you pay on your money. ISAs can protect savings, investment growth, and dividends from tax, while pensions benefit from tax relief that boosts contributions.
For an ISA, missing a tax year means permanently missing the chance to use those benefits for that year. With pensions, there’s something called ‘carry forward’ which lets you tap into unused allowance from the three previous tax years.
Your annual ISA allowance is £20k – which is a figure determined by the government. Your annual pension allowance is different, and it’s currently capped at £60k each tax year.
How to check whether you’re missing out
Before 5 April, review whether you’ve paid into an ISA or a pension this year. Even small contributions can secure long-term tax advantages. You don’t need to maximise everything – using part of an allowance is still valuable.
Check out your accounts today – and give them a boost before the tax year ends if you can.
Things to keep in mind
The end of the tax year isn’t about overhauling your finances. It’s a checkpoint to make sure your money is set up sensibly before the clock resets. Top up today if you can to make the most of this year’s tax-free allowance before it resets. ISA and tax rules, and account T&Cs apply. If investing, capital at risk.