End of Tax Year Planning for 2025/26 – Key Actions Before 5 April

Posted on 9th March 2026

Tax Advice from Bidwell Accountancy – Milton Keynes

The 2025/26 tax year runs from 6 April 2025 to 5 April 2026, and with the tax year end fast approaching, now is the perfect time to review your finances and ensure you are making the most of the available tax allowances, reliefs and planning opportunities.

At Bidwell Accountancy in Milton Keynes, we encourage our clients to take proactive steps before the tax year ends. Acting early can help reduce your tax liability and put you in a stronger financial position for the year ahead.

Below are some key areas to review before 5 April 2026.

Review Your Dividend Strategy Before Potential Tax Changes

If you are a company director or shareholder, the timing of dividend payments can make a significant difference to your personal tax bill.

For the 2025/26 tax year, dividend tax rates are:

8.75% – Basic rate taxpayers

33.75% – Higher rate taxpayers

39.35% – Additional rate taxpayers

From 6 April 2026, the basic and higher dividend tax rates are expected to increase by two percentage points, meaning:

Basic rate: 10.75%

Higher rate: 35.75%

If your company has available profits, consider declaring dividends before the tax year end to potentially benefit from the lower current rates.

It is also worth remembering the £500 dividend allowance, which resets every tax year and allows the first £500 of dividend income to be received tax-free.

At Bidwell Accountancy, we regularly help business owners plan tax-efficient salary and dividend strategies.

Consider the Timing of Capital Gains

If you are planning to sell shares, investments or business assets, reviewing the timing of the sale could have tax implications.

For 2025/26:

The Capital Gains Tax annual exemption is £3,000

Gains above this may be taxed at 18% or 24%, depending on your income level.

However, from 6 April 2026, the tax rate for:

Business Asset Disposal Relief (BADR)

Investors’ Relief

is expected to increase from 14% to 18%.

If you are considering selling a business, shares in a trading company, or other qualifying assets, it may be beneficial to review whether completing the transaction before April 2026 could reduce the tax payable.

Our tax advisers can help you structure disposals efficiently and minimise Capital Gains Tax.

Review Inheritance Tax Planning

Changes to Inheritance Tax (IHT) reliefs are expected from 6 April 2026, particularly for those with business or agricultural assets.

A new allowance will apply where:

Up to £2.5 million of qualifying agricultural or business property may receive 100% relief

Any qualifying assets above this threshold may only receive 50% relief

For individuals or families with significant business ownership or agricultural property, early estate planning will be essential to ensure wealth is protected and passed on tax-efficiently.

At Bidwell Accountancy, we work closely with clients on long-term tax planning and succession strategies.

Make the Most of Your Tax Allowances

Before the tax year ends, it is important to check that you have used all available personal allowances and tax-efficient savings opportunities.

Key areas to review include:

Pension contributions – which can attract valuable tax relief

ISA allowances – up to £20,000 per year tax-free investment

Personal allowance usage

Personal savings allowance

Taking action before 5 April ensures these allowances are not lost.

Prepare for Making Tax Digital for Income Tax (MTD)

A major change is coming to the UK tax system.

From 6 April 2026, Making Tax Digital (MTD) for Income Tax will become mandatory for:

Self-employed individuals

Landlords

with annual business or property income over £50,000.

Under MTD, taxpayers will need to:

Keep digital records

Submit quarterly updates to HMRC

Use MTD-compatible software

The traditional Self Assessment tax return will still be required by 31 January, but the way information is submitted throughout the year will change significantly.

At Bidwell Accountancy, we are already helping clients transition to digital accounting systems such as Xero and Dext, ensuring they are ready for MTD well before the deadline.