5 tax-year end moves so you can drive your financial future

With the end of the tax year falling on Easter Sunday this year on 5 April, interactive investor (ii), the UK’s leading flat-fee investment platform, is urging investors to take a few simple steps now to avoid missing out on allowances and tax-efficient opportunities before they reset.

New research* from interactive investor shows that confusion around tax year end remains widespread. Almost three-quarters don’t know when the tax year actually ends (74%), while the same proportion (74%) are unaware that the current ISA allowance is £20,000.

At the same time, money worries are taking their toll. Over half feel stressed (52%) or overwhelmed (53%) when thinking about investing, and 61% experience money stress on a weekly basis.

• Invest with ii: Open an ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA

Camilla Esmund, senior manager at interactive investor, says: “Unfortunately, our research shows that tax year end has become synonymous with stress and confusion. Rather than a deadline to fear, it should be an opportunity for us to use. There are steps investors can take to feel more in control at this time of year and keep more of their money. In fact, this is only ever going to get more important, with fiscal drag continuing to bite. The good news is that you don’t need to do everything at once. A few well-placed actions can make a meaningful difference over time.

“Financial jargon can make things feel more complicated than they are. In reality, many of these steps are straightforward once you break them down. Think of tax year end as a prompt. It’s a moment to check in, take stock, and make a few smart decisions. As well as making the most of those all-important allowances before they reset, this is about instilling healthy financial habits for the new tax year, too.”

1) ISA allowance: use it or lose it

“Individual savings accounts (ISAs) remain one of the simplest ways to shield your money from tax. Until 5 April, you can invest up to £20,000 into a stocks & shares ISA to protect your savings and investments from income tax, dividend tax, and capital gains tax (CGT). If you haven’t used this year’s allowance, consider doing so before it resets. Even small contributions can build momentum thanks to the magic of compounding.

“Investing in the markets is more effective than holding cash when it comes to growing your wealth over time, albeit, with more risk. Carefully consider your goals, stage of life, and risk tolerance. In a stocks & shares ISA, you are not restricted to just investing in individual companies; you can choose to invest your money in a wide range of shares, funds, bonds, and more. In fact, it’s important to diversify. interactive investor has plenty of educational tools to help investors make empowered decisions and build a well-balanced ISA portfolios for the long-term. There are also managed ISAs on the market, such as ii’s Managed ISA.”

2) Check whether you have investments outside tax wrappers, and consider moving them into an ISA

“89% of people don’t know what ‘Bed & ISA’ means, which, given the term is jargony – isn’t hugely surprising. However, it can be a nifty way to transfer assets held outside a tax wrapper into an ISA to shelter future investment growth and income, and you don’t need to use any new money. If you have any spare allowance to use, moving assets into an ISA means you’ll ultimately save more.”

At interactive investor, the deadline for Bed & ISA/JISA instructions is 4.30pm, Friday 27 March – you can find out more information on ii.co.uk.

3) Top up your pension and claim tax relief

“Do not underestimate the power of pensions. Pensions offer valuable tax advantages, including upfront tax relief. By making the most of your pension contributions, you have the long-term benefit of more in your pension pot growing tax-free, alongside the immediate benefit of reducing your taxable income today. Bear in mind, this money is tied up until age 55, rising to 57 in 2028.

“If you are a higher-rate taxpayer, this can be even more effective – you can claim extra tax relief through your tax return.

“Most people can pay the lower of £60,000 or 100% of relevant earnings into a pension each year and get upfront tax relief. If you have scope to contribute, doing so before the deadline can give your retirement savings a helpful leg up.”

4) Coordinate your investments as a couple or family

“For couples and families, tax year end is great opportunity to take a joined-up approach to your finances. Many allowances can effectively be doubled if you plan together. For spouses and couples, you can make use of both £20,000 annual ISA allowances, meaning you have a £40,000 allowance to play with.

“The key is to not view finances in isolation. A bit of coordination can go a long way in reducing unnecessary tax and making your household wealth work harder overall.”

At interactive investor, investors on the Plus Plan can gift five fee-free accounts for their family members – making it even easier to have a joined-up approach. You can find out more information on interactive investor’s website, here.

5) Don’t forget Junior ISAs

“Tax-efficient accounts for children can be a powerful way to build a financial head start. If you’re a parent or guardian, you might consider opening a Junior ISA as they’re a great way to build a nest egg for the youngest members of your family. You can invest up to £9,000 annually into a JISA until a child is 18, giving your investments plenty of time to grow.

“Making the most of these tools could off-set costs down the line, too. They’re also a fantastic way to engage your little ones in investing from a young age, encouraging open conversations on money. This can help build a healthy relationship with money that will see them through their lives.

“Once an account is open, anyone can contribute, so payments into a JISA can be a way for particularly tax-savvy parents, grandparents and family members that have maxed their ISA allowance to stow away extra funds.”

Methodology

*The research was conducted by Censuswide, among a nationally representative sample of 2,001 UK consumers (Aged 18+). The data was collected between 20.01.2026 - 22.01.2026. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.