Make the most of your new tax year allowances

A new tax year has begun, bringing new opportunities to make the most of your money.

With new tax allowances available and another full year to benefit from tax-free savings, now is the perfect time to get your finances in order. Acting early can help you maximise your returns throughout the year and ensure you’re making the best financial decisions. Here’s why you should take action now and how financial advice can help you stay ahead.

Your new tax-free ISA allowance

One of the key benefits of a new tax year is the reset of your Individual Savings Account (ISA) allowance. For the 2025/26 tax year, you can contribute up to £20,000 into ISAs, whether in a Cash ISA, Stocks and Shares ISA, or a combination of both. ISAs are one of the most tax-efficient ways to save and invest, as any interest, dividends, or capital gains you earn are completely tax-free.

By investing early in the tax year, you give your money more time to grow, compounding the benefits of tax-free gains. If you leave it until the end of the year, you’re missing out on a whole year’s worth of potential growth.

Why invest early in the tax year?

Many people wait until the end of the tax year to use their allowances, but acting now has several advantages:

• Maximise tax-free growth: The sooner you invest, the more time your money has to grow, thanks to returns that build on each other over time, without being reduced by taxes.
• Avoid last-minute stress: Leaving investments until the following March can mean making rushed decisions. Planning now ensures your strategy is well thought out.
• Beat inflation: With the cost of living rising, your cash savings lose value in real terms over time. Investing earlier can help your money keep pace with inflation.

Other tax allowances to consider

Beyond your ISA, there are several other tax-efficient ways to save and invest:

• Pensions: Your annual pension allowance remains at £60,000 (or 100% of your earnings, whichever is lower). Contributing early means your money has more time to benefit from investment growth and tax relief.
• Capital Gains Tax (CGT) Allowance: The CGT allowance has been reduced to £3,000, meaning strategic tax planning is more important than ever.
• Dividend Allowance: The tax-free allowance for dividends is now £500, so structuring your investments efficiently is crucial.

It’s important to take financial advice

The start of the new financial year is the best time to review your financial plans. Your Aegon Financial Planning Manager can help you:

• Maximise your new tax year allowances: Make the most of your investments held with Aegon Financial Planning and benefit from a whole year of tax efficient potential growth.
• Plan for the future: Everyone’s financial situation is unique. Your Aegon Financial Planning Manger will ensure your investments are aligned to your long-term goals.
• Manage risk effectively: Investing involves risk, but expert advice ensures you strike the right balance between growing your wealth whilst protecting what you have.

Make a fresh start for the new tax year

With the new tax year underway, now is the perfect time to take control of your financial future. By investing early and seeking expert advice, you can maximise your tax allowances and set yourself up for success.  If you have ISA funds elsewhere, did you know you can transfer these into your Aegon ISA making it easier to manage and track your investments, we recommend scheduling an appointment with a Financial Planning Manager.

Ensure your finances are in top shape for the year ahead – call us on 0800 464 3079*, or request an appointment using the button below at a time that’s best for you.

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