A Revised Fiscal Calendar
The 2024 Budget Changes
The 2024 Budget reshaped the Chancellor’s fiscal timetable. Key adjustments include:
-
The Office for Budget Responsibility (OBR) will now publish only one full assessment per year, aligned with the Autumn Budget
-
The Spring Statement (scheduled for 3 March this year) will become a minor fiscal update rather than a major policy event
Despite these changes, the tax year will continue to end on 5 April — which unusually falls on Easter Sunday in 2026.
Delayed Implementation of Budget Measures
Traditionally, many Budget announcements take effect from 6 April, but 2026 will be an exception. In fact:
-
Some measures from the 2025 Budget are not scheduled to begin until 2028 or beyond
However, this doesn’t mean taxpayers should sit back — there is still a wide range of year-end planning opportunities to consider.
Key Areas for Year-End Tax Planning
1. Threshold Planning
The 2024 Budget did not address the problematic income tax thresholds, which create sharp increases in effective tax rates. The key trigger points include:
-
High Income Child Benefit Charge:
Applies between £60,000–£80,000
-
Personal Allowance Taper:
Begins at £100,000 and ends at £125,140
-
Loss of Tax-Free Childcare:
Occurs at £100,000, with no tapering
As the tax year draws to a close and your 2025/26 income becomes clearer, there may be opportunities to:
-
Defer income
-
Make pension contributions
-
Adjust benefits or bonuses
-
Or otherwise sidestep thresholds to preserve benefits and allowances
2. Inheritance Tax (IHT) Planning
The Budget extended the freeze on the IHT nil-rate band (£325,000) until April 2031. This band was last raised in April 2009, meaning it will be frozen for at least 22 years.
In this environment, it becomes even more important not to waste annual exemptions, including:
-
£3,000 annual exemption
-
£250 small gifts exemption
-
Gifts from normal expenditure (often overlooked but potentially the most valuable of all)
Regular planning can help reduce future IHT exposure without needing complex structures.
3. Marriage Allowance Claims
If you or your spouse/civil partner earned below the personal allowance in 2021/22 (£12,570), you can still claim the Marriage Allowance for that year until 5 April 2026.
Key notes:
-
The allowance for 2021/22 is £1,260
-
The tax saving can be up to £252
-
The claim requires that the other partner was a basic rate taxpayer (starter/basic/intermediate in Scotland)
Since the allowance has remained at £1,260 for all subsequent years, combined retrospective claims could generate over £1,250 in tax refunds.
The Bottom Line
There are many other planning opportunities available before the tax year closes — but it is essential to seek advice before acting to ensure suitability and compliance.
Important Notes
-
Tax treatment varies according to individual circumstances and is subject to change.
-
The Financial Conduct Authority does not regulate tax advice.
Talk to Us About Year-End Tax Planning
The run-up to 5 April remains one of the most valuable windows for tax-efficient planning. If you want to reduce avoidable tax exposure, make use of allowances, or optimise thresholds, early preparation is key.
Contact Chartwell Wealth Management today to review your situation and make the most of the current tax year before it ends.
