With the festivities behind us, it is time to turn our thoughts to tax year dates and, in particular, what needs checked before 5 April.
Last year’s Budget revised the Chancellor’s fiscal calendar. From now on, the Office for Budget Responsibility (OBR) will make only one full assessment a year of the UK’s finances. This will sit alongside the Autumn Budget. As a result, the Spring Statement due in March is likely to be little more than a minor update.
The key date for 2026
The tax year will still end on 5 April. In 2026, that falls on Easter Sunday.
Normally, many changes announced in the Budget would take effect on the following day. However, that is not the case in 2026. Indeed, some of the measures of Budget 2025 are not due to take effect until 2028 or later.
Even so, there is plenty to consider now in terms of year-end tax planning.
Threshold planning: what to watch
The Budget did nothing to remove the anomalies in the income tax system created by arbitrary thresholds. The most significant of these are:
- The high income child benefit charge threshold starting at £60,000 (and ending at £80,000)
- The £100,000 threshold at which the personal allowance begins to be tapered (ending at £125,140)
- The point at which tax-free childcare is lost (it falls off a cliff, with no tapering)
As the year end gets closer
As the year end nears, estimating your 2025/26 income becomes easier.
That is useful, because opportunities can then be spotted. For example, thresholds can sometimes be sidestepped. Alternatively, tax relief can be gained at the high rates these thresholds can create.
This is also why it helps to keep an eye on tax year dates. A small timing change can make a difference.
Inheritance tax: don’t waste the exemptions
In the Budget, the inheritance tax (IHT) nil rate band (£325,000) was frozen for another year, to April 2031. It was last increased in April 2009.
That makes it even more important that yearly gift exemptions are not wasted, including:
- The £3,000 annual exemption
- The £250 small gifts exemption
- The least understood, but potentially most valuable exemption, for normal expenditure gifts
Marriage Allowance: a deadline worth noting
If you or your spouse or civil partner had income below the personal allowance in 2021/22 (£12,570, as it now will be until April 2031), you have until 5 April 2026 to claim the Marriage Allowance for that year (£1,260).
A tax saving of up to £252 could be produced.
A claim can only be made if the other partner was a basic rate taxpayer (starter, basic or intermediate rate in Scotland) in 2021/22. The principle applies (with an allowance of £1,260) for all subsequent years. So, you might be able to reclaim over £1,250.
There are many other points to consider, but do take advice before taking action. The Autumn Budget 2025 is available to read here.