As the end of the tax year approaches, there are two types of people:
1️⃣ Those who make the most of their tax allowances…
2️⃣ And those who look back in April wishing they’d acted sooner.
Every year, thousands of people miss out on valuable tax benefits simply because they leave things too late. Once the tax year closes on 5 April, your unused allowances are gone forever — you can’t carry them forward, reclaim them, or “catch up”.
At Clarity Wealth Limited, we see this happen far too often, and the impact over a lifetime can run into tens or even hundreds of thousands of pounds.
So here’s your reminder:
Now is the time to make sure you’ve used your ISA and pension allowances.
1️⃣ Your ISA Allowance: Use It or Lose It
Every adult has a £20,000 annual ISA allowance, and it resets each April.
ISAs remain one of the most powerful planning tools available because:
- All growth is tax-free
- All withdrawals are tax-free
- There is no impact on income tax, capital gains tax or dividend tax
- They provide long-term flexibility and control
But the key point?
If you don’t use your ISA allowance by 5 April, you lose it forever.
And in a world of rising tax receipts, frozen thresholds and increasing drag on wealth, the value of tax-free growth compounds enormously over time.
2️⃣ Not Ready to Commit to a Long-Term Investment ISA? No Problem.
Many people hesitate to use their ISA allowance because they feel unsure about:
- Market timing
- Investment choices
- Risk levels
- Whether now is the “right moment” to invest
Here’s the good news:
You can secure your ISA allowance NOW… and decide how to invest LATER.
How?
✔ Put the money into a Cash ISA or instant-access ISA today, which protects your annual allowance.
✔ Then, when you’re ready — in a week, a month, or after a planning meeting —
you can transfer that ISA into an investment ISA without losing your tax-free wrapper.
This is one of the smartest ways to use your allowance even if you’re not yet ready for long-term investment decisions.
It removes pressure, avoids rushed choices, and ensures no allowance goes unused.
3️⃣ Pension Contributions: A Powerful (and Often Underused) Opportunity
Pensions offer some of the strongest tax advantages in the entire UK system.
For most people:
- You receive tax relief on contributions
- Your investments grow tax-free inside the pension
- Pensions remain outside your estate for Inheritance Tax
- You can use carry forward if you have unused allowances from previous years (subject to rules)
But again:
Your annual pension allowance resets on 5 April.
Unused allowance? Gone.
If you’re earning well, expecting bonuses, or simply want to make your money work harder, reviewing pension contributions before the deadline is crucial.
For higher-rate and additional-rate taxpayers, this planning is even more valuable.
4️⃣ Why Review Now?
Because waiting until the last week of March can lead to:
⚠ Missed allowances
⚠ Delays with providers
⚠ Incorrect contributions
⚠ Rushed decisions
⚠ Avoidable tax leakage
By acting early, you give yourself:
✔ More options
✔ More clarity
✔ More flexibility
✔ More time to plan strategically
✔ More potential long-term tax benefits
Tax planning is always more effective when it’s proactive — not reactive.
Now Is the Perfect Time to Take Control
Whether you:
- Want to maximise your ISA
- Need advice on pension contributions
- Are unsure how best to invest
- Want to protect allowances before they vanish
- Or simply want clarity on your long-term plan
—we’re here to help.
At Clarity Wealth Limited, we specialise in helping people make smart, evidence-based decisions that support their long-term goals, reduce tax drag and create financial confidence.
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