What is a tax year?

A tax year is a 12-month period which starts on 6 April and ends on 5 April the following year.
We are currently in the 2025–26 tax year.

Each year, you can save a certain amount of money in your ISA, pension and child’s Junior ISA tax-free. These are known as your ‘allowances’. The amount varies depending on the type of account and, in the case of pensions, how much you earn.

 

Make the most of your allowances

Using your allowances every tax year ends makes sound financial sense. 

Your ISA, Junior ISA and pension savings can grow free from Income and Capital Gains Tax (CGT).

 
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Stocks and Shares ISA
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Personal Pension
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Junior ISA
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General Account
Annual allowance
£20,000
£60,000* or your income, whichever is lower
£9,000
Unlimited
Tax relief on contributions**
Tax-free withdrawals
25% – the other 75% is taxable income
Tax-free, when the child is 18
Carry forward allowance
Previous 3 years

*Your allowance could be higher if you can use carry forward. It could be lower if you are a higher earner. It will be lower if you are a non-earner or have withdrawn from your pension. Find out how much you can pay into a pension.


**If you are making contributions through your Ltd company, you get a reduction in Corporation Tax, not tax relief.
Find out more about our Personal Pension.

Why it's smarter to invest than save

Long-term returns

Over time, shares typically deliver higher returns than saving cash. 

Compound growth

The longer you invest, the more you benefit from compounding. Even small amounts can grow over time.

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Value of compounding

Find out what compounding is, how it works and why it can help to boost your investment returns over time.

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How to guides

How to open an account

Read the FAQ

How to transfer - an ISA, Junior ISA or General Account

Read the FAQ

How much you can pay into your pension?

Read the FAQ

"The government provides generous tax allowances through ISAs and pensions to help you save for your future. Using these wrappers means you won’t pay Income Tax on dividend or interest income, or Capital Gains Tax on growth, increasing your chances of achieving investment success."

James Norton

Head of Retirement and Managed Services

Insights from our experts

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We cannot give tax advice

This information is based on current tax regulation, which may be subject to changes in the future.

If you need more assistance with your tax return, we suggest speaking to an accountant or seeking financial advice.