Year-end tax checklist: Protecting your wealth through proactive planning

19 Aug 2025 | Personal tax

Planning at the end of the tax year is not only about meeting deadlines, it is about protecting family wealth and keeping more of what you earn. Our year-end tax checklist for 2025/26 sets out the practical steps to take each month so you avoid last-minute pressure, make smart use of allowances, and stay compliant. Scotland’s income tax bands and rates differ from the rest of the UK, so Scottish taxpayers should pay close attention to thresholds and bands that affect their bills. The rules around capital gains, pensions, and estates have also shifted in recent years, which means familiar habits may no longer deliver the same results.

This guide focuses on three areas that most affect our clients’ personal finances: self assessment and income tax, capital gains tax (CGT), and inheritance tax (IHT). We highlight where you can still act before 5 April 2026, how to spread actions across the year for better cashflow, and what to record so HMRC queries are straightforward. One useful reference point: the Office for Budget Responsibility estimates CGT will raise £19.7bn in 2025/26 – a reminder that tax on investment gains is meaningful and worth planning for (OBR, 2025). 

What changed for 2025/26

Several thresholds and rules continue to shape planning decisions:

  • Personal allowance remains £12,570 for most UK taxpayers, with tapering from £100,000. Scottish taxpayers pay income tax at Scottish rates and bands, so the point at which higher rates apply can differ from the rest of the UK.
  • CGT: the annual exempt amount is £3,000 for individuals, and from 6 April 2025 CGT rates are 18% for basic-rate taxpayers and 24% for higher/additional-rate taxpayers on most assets, with residential property gains taxed at the same rates. Private residence relief still protects your main home, and CGT on UK residential property must be reported and paid within 60 days of completion. (HMRC, 2025).
  • IHT: the nil-rate band is £325,000 and the residence nil-rate band is £175,000, both transferable between spouses or civil partners, allowing many couples to pass up to £1 million without IHT when conditions are met.
  • Marriage allowance lets eligible couples transfer £1,260 of Personal Allowance, saving up to £252 in 2025/26 when the recipient is a basic-rate taxpayer.

Your year-end tax checklist: Month-by-month

Spreading actions across the year helps you avoid a backlog in March, and it often leads to better outcomes. Use this year-end tax checklist to pace your planning.

April:

  • Baselines: Capture year-opening portfolio values, cash balances, and any unused CGT losses carried forward.
  • Direct debits: Set or review pension contributions, ISA funding plans, and charitable gifts for the new year.
  • Records: Create a single folder (digital is fine) for 2025/26 payslips, bank interest, dividends, and gift records.

May:

  • Scottish taxpayers: Check the current Scottish income tax bands and adjust savings, pension contributions, or bonus timing if you are close to thresholds.
  • Property planning: If selling a rental or second home, model potential gains now. Build in the 60-day CGT reporting requirement.

June:

  • Portfolio housekeeping: Consider selling underperformers to realise losses you can offset against gains later in the year.
  • Gifting review: Use the £3,000 annual IHT gift allowance. Track small gifts and regular gifts out of surplus income separately, with clear records.

July:

  • Payments on account: If relevant, budget for the 31 July instalment. If your 2025/26 income is likely to be lower than 2024/25, explore reducing payments on account with evidence.
  • Marriage Allowance: Check eligibility where one partner is a non-taxpayer and the other pays basic rate.

August:

  • Capital gains spacing: Plan disposals across tax years if you expect large gains. Consider transferring assets between spouses or civil partners on a no-gain, no-loss basis to spread gains and use two allowances.
  • ISA strategy: Line up a monthly funding plan so you use the full ISA allowance by 5 April without a year-end scramble.

September:

  • Pensions: Review tapered annual allowance if you have high income, and consider carry forward from the previous three tax years if appropriate.
  • Records check: Reconcile dividend and interest statements to date.

October:

  • Self assessment registration: If you need to file and have not registered before, the deadline is 5 October 2025. (HMRC, deadlines). 
  • Estate documents: Ensure wills, letters of wishes, and pension nomination forms match current intentions.

November:

  • CGT planning window: Run forecasts before any December trades. If you are near the £3,000 exemption, think about crystallising gains or losses in a controlled way.
  • Trusts and estates: Check distribution plans and paperwork if you are a trustee or executor.

December:

  • Bonuses and dividends: Time any awards with care – consider pension contributions to manage marginal rates and the Personal Allowance taper from £100,000.
  • Charitable giving: Consider Gift Aid before 5 April to increase donations at no extra cost if you pay higher rates.

January:

  • Self assessment habits: Even though the 2025/26 online filing deadline is 31 January 2027, draft your return early to avoid shocks and to manage cashflow. (HMRC, deadlines). 
  • Pension tax relief: Top-ups made before 5 April can attract relief at your highest marginal rate, subject to allowances.

February:

  • CGT tidy-up: Arrange any final disposals to use remaining exemption or harvest losses against gains already realised.
  • IHT gifting: Make use of the £250 small gift exemption per recipient, and ensure the annual £3,000 exemption is used.

March:

  • Final checks: ISA funding, pension contributions, VCT/EIS considerations if suitable for your risk profile, and confirming Gift Aid declarations.
  • Evidence: Keep statements, contract notes, and gift schedules organised. If you sold a property this year, confirm any 60-day CGT reports are filed and paid.

Reliefs and actions people often miss

  • Marriage allowance: Where one partner has spare Personal Allowance and the other is a basic-rate taxpayer, a simple claim can save up to £252 each year.
  • CGT loss relief: Declare allowable losses to HMRC, even if you do not need them now. They can be carried forward to offset future gains.
  • Asset sharing between spouses/civil partners: Equalise ownership before a sale to use two annual exemptions and potentially lower CGT rates.
  • IHT records: Keep a running log of gifts, especially regular gifts from surplus income, with evidence that normal expenditure is covered.
  • Scottish bands: If you pay Scottish income tax, the points where rates change differ from the rest of the UK. Small timing decisions on bonuses, pension contributions, or dividends can make a measurable difference.
  • Property reporting: Residential property gains for UK residents must be reported and paid within 60 days of completion. Build this into your completion timetable. (HMRC, CGT rates and rules).

We can help at any stage. For tailored advice on allowances, timing and documentation, speak to our personal tax planning team, our self assessment specialists, or our inheritance tax and estate planning advisers in Glasgow.

Make year-end planning work for you

A good year-end tax checklist is practical, clear, and focused on actions you can take now. Start with your goals – funding retirement, helping family, buying a property – then match the tax steps to those goals. If you expect income to fluctuate, plan pension contributions early rather than in one lump at the end of the year. If you hold assets outside ISAs and pensions, map out disposals over more than one tax year to use allowances efficiently. For estates that are likely to exceed the IHT thresholds, make use of annual exemptions, consider life cover in trust, and keep nomination forms current so your plans are respected.

Documentation matters. HMRC expects accurate records for gains, losses, gifts and reliefs. Keep a simple log of dates, amounts and references, and store statements and contract notes in one place. This discipline makes Self Assessment easier and shortens any HMRC queries. Above all, remember that small, timely decisions add up. Using your ISA allowance, setting regular pension contributions, and making modest but consistent gifts can reduce lifetime tax substantially. And if circumstances change – a new job, business sale, or family event – revisit your plan rather than waiting until March.

If you would like us to turn this year-end tax checklist into a personal action plan, get in touch. We will review your position, explain your options in plain English, and help you protect your wealth with calm, proactive advice.