Tax Year-End Checklist: 2026/27
UK Tax Year-End Checklist (2026/27)
Comprehensive UK tax year-end checklist for 2026/27: 15 action items to complete before 5 April - ISA £20k allowance + LISA £4k + JISA £9k, pension £60k AA + carry-forward up to £240k stacked, CGT £3k AEA + bed-and-ISA + bed-and-spouse strategies, Gift Aid carry-back, Marriage Allowance £1,260 with 4-year backdate, IHT annual exemption £3k, Section 21 IHTA gifts from surplus income, MTD ITSA April 2026 implications.
15-Item Tax Year-End Checklist
| Action | Deadline | What to do | Priority |
|---|---|---|---|
| ISA allowance £20,000 | 5 April | Top up Cash ISA / S&S ISA / LISA before 5 April. Allowance does NOT carry forward. Major use-it-or-lose-it. | CRITICAL |
| Junior ISA £9,000 | 5 April | Use JISA for each child. Major lifetime compound benefit. | High if applicable |
| Lifetime ISA £4,000 | 5 April | £4k + 25% bonus = £5k. Available age 18-39 to open; contribute until 50. First home or age 60. | High for under-40s |
| Pension £60,000 AA | 5 April | Top up workplace pension or SIPP. Use carry-forward from previous 3 years if needed (up to £240k total). | CRITICAL for higher earners |
| CGT Annual Exempt Amount £3,000 | 5 April | Crystallise gains before 5 April. Use bed-and-ISA or bed-and-spouse to lock in. | High if approaching threshold |
| Dividend Allowance £500 | 5 April | Pay dividends within allowance if you have Ltd company control. Tax-free up to £500. | High for company directors |
| Personal Savings Allowance £1,000 / £500 | 5 April | Ensure savings interest within band. Above: consider Cash ISA next year. | Reference only |
| Marriage Allowance £1,260 | 5 April (with 4-yr backdate) | If lower-earning spouse has unused PA + higher spouse is basic-rate, claim/backdate up to 4 years. | High if eligible |
| IHT annual exemption £3,000 | 5 April | Gift to anyone tax-free. Carry forward 1 year. £250 small gifts to multiple people. | High for IHT-exposed estates |
| Gift Aid carry-back | 31 January (next year) | Charity donations made before 31 Jan can be carried back to previous tax year if you elect. | Medium |
| SEIS / EIS / VCT investments | 5 April | Income tax relief 50/30/30% claimable in current OR carry-back to previous tax year. | Medium for high earners |
| Spousal CGT planning | 5 April | Transfer assets to spouse pre-disposal to use their CGT AEA. Tax-free spouse transfer. | High for large CGT events |
| Income Tax band planning | 5 April | Defer income or accelerate to manage band crossings (£12,570 / £50,270 / £100k / £125k / £150k). | High at threshold crossings |
| Self-employed expense acceleration | 5 April | Buy needed business equipment / supplies before year-end. Use AIA £1m on capital items. | High for self-employed |
| Section 21 IHTA gifts from surplus income | 5 April | Document regular gifts pattern - tax-free if from income not capital + don't reduce living standard. | High for high-income IHT-exposed |
Frequently asked questions
Why does the 5 April deadline matter?
The UK tax year runs 6 April to 5 April. Most personal tax allowances, exemptions + reliefs are USE-IT-OR-LOSE-IT within the tax year. Failure to use them by 5 April means permanent loss. Major examples: ISA £20k allowance, pension contributions (current year AA), CGT Annual Exempt Amount £3k, dividend allowance, IHT annual exemption £3k. Some allowances offer carry-forward (pension 3 years; IHT annual exemption 1 year) but most do not. Year-end planning maximises tax efficiency before the clock resets.
What's the bed-and-ISA strategy?
Crystallise CGT gains within £3,000 Annual Exempt Amount + immediately repurchase same shares within ISA wrapper. Mechanics: (a) Sell shares in General Investment Account (GIA) - capital gain up to £3k uses AEA + is tax-free. (b) Within minutes / hours, buy back same / similar shares within S&S ISA (using up to £20k ISA allowance). (c) Subsequent growth + dividends tax-free permanently within ISA. Anti-avoidance: 30-day rule applies - but ONLY to the SAME shares. Buying back via ISA is treated as new acquisition. Major tool: clears CGT-laden positions out of taxable account into permanent shelter. Most platforms (Hargreaves Lansdown, AJ Bell, Vanguard) automate the process.
What's the bed-and-spouse strategy?
Transfer asset to spouse pre-sale to use their CGT AEA. Spouses can transfer assets between each other on a "no gain / no loss" basis - tax-free transfer + spouse takes over base cost. Mechanics: (a) Transfer half (or specific portion) of GIA assets to spouse. (b) Both sell - each uses their own £3k AEA. (c) Combined tax-free realisation: £6k of gain. Multi-year strategy: spread CGT gains across multiple years using both spouses' allowances + basic-rate bands. Can combine with bed-and-ISA: spouse sells in their name, you buy in your ISA, OR vice versa. Excellent CGT management for high-value portfolios approaching disposal.
How does pension carry-forward work for year-end?
Annual Allowance £60,000 per year. Unused allowance carried forward 3 years. So 2026/27 year-end: can contribute up to £60k current year + carry-forward of unused 2023/24 + 2024/25 + 2025/26 (subject to current year earnings cap). Practical: someone earning £100k with £20k existing 2026/27 contributions can stack £100k extra (£60k current AA used + £40k from prior 3 years if available + subject to relevant earnings cap). Year-end window: must be paid + cleared by pension provider before 5 April for the contribution to count toward your 2026/27 AA. Personal contributions: payment cleared (cheque or BACS) by 5 April. Employer contributions are CT-deductible in the company's own accounting period (Section 196 FA 2004 covers the company's CT relief, not the employee's SA year). Reclaim higher / additional-rate relief on personal contributions via SA or PAYE code adjustment - basic-rate relief is typically auto-grossed via the pension provider.
What's Gift Aid carry-back?
Section 426 Income Tax Act 2007. Charity donations made AFTER 5 April but BEFORE you file SA for the previous tax year (31 January deadline) can be CARRIED BACK to that previous tax year - getting the tax relief earlier. Useful when: (a) Higher-rate taxpayer in earlier year, basic-rate in current year - extra 20-25% tax relief by carrying back. (b) Charitable donations strategy - smooth tax relief across years. (c) Income crossed a threshold in earlier year (£100k taper or £125k+ additional rate); donation reduces taxable income retroactively. Election made when filing SA - typically box on the return + relevant tax year. Donor needs Gift Aid declaration + standard charity gift acknowledgement.
Spousal allowance + Marriage Allowance optimisation?
Three combined opportunities pre-5 April: (a) Marriage Allowance £1,260 - lower-earner transfers PA to basic-rate spouse. £252/yr saving. Backdate up to 4 years if eligible. (b) Income smoothing: transfer income-producing assets to lower-rate spouse using their unused allowances. Form 17 for property; spousal share transfer for investments. (c) CGT smoothing: distribute assets between spouses to use both AEAs annually. (d) Pension contributions for non-earning spouse: £2,880 net contribution = £3,600 gross with 20% tax relief - even for non-earners. Maximises both family members' tax allowances. (e) ISA allowances: each spouse gets £20k = £40k combined per year. JISA / LISA / Junior SIPP additional.
How do I check what I've used + what's left?
(a) ISA usage: providers show usage. Don't exceed £20k across all ISAs. (b) Pension contributions: provider statements show current year + carry-forward available. HMRC Personal Tax Account shows recent contributions. (c) CGT AEA: track via your own records - calculate disposed gains for the year. Pre-5 April calculation crucial. (d) Dividend Allowance £500: company directors track via own records; HMRC tax code reflects expected dividends. (e) Marriage Allowance: applied automatically once claimed - shows on PAYE coding notice. (f) SEIS / EIS: certificates issued by companies - keep for tax return. Plan year-end activities: ideally 4-6 weeks before 5 April to allow processing time.
What about MTD ITSA from April 2026?
Making Tax Digital for Income Tax Self Assessment - quarterly reporting requirement for self-employed + landlords with income £50k+ from April 2026 (phased to £30k+ April 2027, £20k+ April 2028). Year-end checklist additions for MTD-affected: (a) Digital records via approved software (FreeAgent, Xero, QuickBooks, Crunch) by 5 April 2026 launch. (b) Q1 (5 Apr - 5 Jul) quarterly update by 5 August 2026 - so post-year-end planning extends. (c) Final Declaration replaces Self Assessment by 31 January. (d) Penalty regime: 4 points threshold, £200 penalty. Year-end + MTD interaction: more discipline around expense recording + record keeping. Earlier digitisation actually simplifies year-end planning over time.
Related guides
- UK Tax Year-End Checklist (legacy) - earlier version.
- UK Tax-Free Allowances Stack 2026/27 - all 17 allowances.
- UK Tapered AA 2026/27 - high-earner pension planning.
- UK SA Deadlines + Penalties 2026/27 - SA timeline.