Chancellor Rachel Reeves' second Budget on 26 November 2025 was largely a case of upfront costs, such as the scrapping of the two-child benefit cap, being financed by future tax increases. The personal allowance and the higher-rate threshold are frozen for a further three years from April 2028, and the rates of tax on savings income, dividends and income from property will all see increases at some point. A further blow for savers is the reduction of the cash ISA limit from April 2027 for those aged under 65. Salary sacrifice involving pension contributions has also been targeted, although the change will not come in until April 2029. This will make it more difficult for employees to avoid the 60% (63% in Scotland) effective tax rate where the personal allowance is tapered away. 

The personal allowance remains at £12,570 until 2030/31 and the higher rate threshold will stay at £50,270 – the levels that first took effect in 2021/22. With inflation at 3.6% (November 2025) and more pertinently annual earnings growth at 4.6%, these measures will result in increased taxation for many. 

Making the most of tax reliefs and allowances while they are still available remains crucial. 

Our guide to Year End Tax Planning 2025/26 offers some advice on the principal opportunities you could consider and forms the basis of a good financial plan to complete the tax year. With ideas affecting income and investment, for couples, company directors and employees, and self-employed people, there will be something for everyone. 

The guide offers practical, concise steps you can take across key issues, such as:

• income tax saving opportunities
• planning for directors and employees
• pension tax planning
• capital gains tax planning
• self-employment
• individual savings accounts
• inheritance tax planning
• charitable giving

 

Download the Year-End Tax Planning Guide 2025/26

We hope our guide gives you some ideas for how to make the most of your finances for the end of the tax year. 

If you would like further advice on any of the topics, or to discuss how they affect your individual circumstances, please get in touch.

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