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By Wesleyan

Your tax year-end checklist

financial planning
2 min
Young professional woman with laptop smiling at desk

As the end of the 2021/22 tax year approaches, here's a reminder of the tax relief and allowances available to you:


  • Pensions can be tax-efficient due to the nature of tax relief, so consider if you can pay in the full annual allowance. You can also carry forward any unused allowance from the three previous tax years, meaning you could add a little extra into your pension pots.
  • Our experts can offer advice on how best to access your pension when you’re ready to retire. Be cautious when considering a large withdrawal, spreading this over two or more tax years could minimise your Income Tax Liability.


  • You can gift up to £3,000 per year and carry forward unused gifts from the previous tax year too. 
  • If you’re a higher earner, as well as maximising your pension contributions, making charitable donations could be considered. They can help decrease your taxable income below the additional rate tax band, which starts at £150,000. This may help you hold onto your Personal Allowance (gradually withdrawn once you earn over £100,000) and your Child Benefit (gradually withdrawn if one parent in the household earns over £50,000).


  • Make the most of your £20,000 tax-free ISA allowance. Remember ISA allowances renew each year and existing allowances cannot be carried over. 
  • Has your spouse or partner maximised their own ISA allowance? Between you both, this could mean a tax-efficient investment of £40,000.
  • Give your children or grandchildren a head start on their savings, by utilising the £9,000 allowance on their Junior ISA. Remember, this doesn’t count towards your personal ISA allowance.

Further tax efficiencies

  • If you own a business that’s a limited company, you could draw income as a business director through dividends, rather than a salary – the first £2,000 of which is tax-free, reducing the amount of tax and National Insurance Contributions (NICs) required.
  • You could potentially reduce your Corporation Tax, Income Tax (including on dividends), and NICs contributions by diverting your company’s pre-tax profits into a personal pension.
  • Utilise your Capital Gains Tax (CGT) allowance, which remains at £12,300 until 2026. Much like the ISA allowance, CGT only runs from tax year to tax year.

Please bear in mind that advice in relation to inheritance tax planning is not regulated by the Financial Conduct Authority. Tax treatment depends upon your individual circumstances and may be subject to change in the future. Bear in mind that the value of investments can go down as well as up and you may get back less than you invest.

Speak to a specialist

If you'd like further advice on how to maximise your finances, you can speak to a Specialist Financial Adviser from Wesleyan Financial Services as part of a no-obligation financial review.