Over the last few weeks, I’m sure you will have spotted more than a few finance articles advising you to use your allowances before the end of the tax year. This is excellent advice. In many cases, it’s a case of use them or lose them.

Now that we are fresh into the 2026/27 tax year, I would like to offer alternative advice. Take advantage of tax breaks now – and maximise your advantage.

Instead of waiting until the last few weeks of the tax year, using your allowances earlier can give your savings and investments more time to grow in a tax-efficient way. Over time, this extra period can really add up.

Here are three allowances worth considering sooner rather than later.

1 ISA allowances: making the most of your time

The Individual Savings Account (ISA) is still one of the most popular ways to save tax-efficiently in the UK. Right now, you can put up to £20,000 into an ISA each tax year, and the government says this limit should stay the same until at least April 2031.

Any interest, dividends, or capital growth you earn in an ISA are not taxed further in the UK. But if you don’t use your full allowance by the end of the tax year, you lose the unused amount.

Many people add money to their ISAs in March to meet the deadline, but putting money in earlier gives your savings or investments more time to grow tax-free.

For example, if you invested £20,000 in a cash ISA with 5% interest at the start of the tax year, by the end of the tax year, you will have earned approximately £1,000 in interest! 

Looking ahead, there’s a planned change: from April 2027, people under 65 will only be able to put £12,000 a year into cash ISAs, though the total ISA allowance will still be £20,000. This means it’s even more important to plan how you use your ISA over the long term.

2 Pension contributions: tax relief and long-term planning

Pensions are still a key part of retirement planning, partly because you get tax relief on what you put in. Most people can put up to £60,000 a year into their pension, including contributions from themselves, their employer, or someone else.

You usually get tax relief on your pension contributions at your highest rate of income tax. If you pay higher or additional rates, you might need to claim extra relief through your tax return.

Adding to your pension earlier in the tax year gives your investments more time to grow in a tax-friendly way.

Pension rules are changing too. From April 2027, most unused pension funds and some death benefits will likely be counted as part of your estate for inheritance tax. This means retirement and estate planning may become more closely linked.

3 Gifting allowances: gradual estate planning

When planning for inheritance tax, people often think about big decisions, but yearly allowances can help too. Everyone can give away up to £3,000 each year without it being added back into their estate for inheritance tax. If you don’t use this allowance, you can carry it forward for just one year.

Additional exemptions apply to certain gifts, including wedding or civil partnership gifts of:

• £5,000 from a parent
• £2,500 from a grandparent
• £1,000 from anyone else

Rather than waiting until the end of the tax year to gift money to a family member, it is better to plan ahead. It is much nicer to gift money on a special occasion, such as a birthday or ahead of a big holiday.

It is often said that giving is better than receiving. If you gift on a tax deadline, it is just a financial transaction. It means much more when gifting happens at a time of meaning.

Planning shouldn’t just happen at the end of the tax year

People often think about tax allowances as the April 5th deadline approaches, but it’s usually better to look at them at the start of the tax year instead.

The best approach depends on your own situation, income, and long-term goals. But if you plan to use your allowances, doing so earlier gives your savings and investments more time to grow tax-efficiently.

A financial adviser can help you see how these allowances fit into your overall plan and make sure your decisions match your long-term goals.