What tax planning should you do before 5 April 2027?

We're now past the halfway point of the 2026/27 tax year (ends 5 April 2027) and most business owners only think about tax in March, by which point half these options are gone.

Here's what to actually sort now:

How are dividends taxed in 2026 to 2027?

Use your £500 dividend allowance - and know the rates went up this year (10.75% basic, 35.75% higher). If you're taking dividends, timing and amounts matter more than they did last year.

HMRC's rates for 6 April 2026 to 5 April 2027 are 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band, on dividends above the £500 allowance. Its table of past rates shows 8.75% and 33.75% for the basic and higher bands in 2025 to 2026, with the additional rate unchanged. To work out your band, HMRC says to add your total dividend income to your other income, and you may pay tax at more than one rate. There is more on taking money out of a company in how much founders should pay themselves.

How much can go into a pension this tax year?

Top up pensions before you lose the allowance - if you want to contribute into a pension you have a £60,000 annual allowance. Employer contributions reduce your Corporation Tax bill too.

HMRC's guidance says the annual allowance is £60,000 and applies across all your private pensions, counting what is paid in by you or by anyone else, such as your employer. It can be lower if you have flexibly accessed a pension pot, or if your threshold income is over £200,000 and your adjusted income is over £260,000. HMRC also says you might be able to carry over annual allowance you did not use from the previous 3 tax years.

On the company side, HMRC's Business Income Manual says an employer's contribution to a registered pension scheme for a director or employee is an allowable expense unless there is a non-trade purpose for the payment.

What is changing for cash ISAs from April 2027?

Fill your £20,000 ISA allowance now - from April 2027 the rules change and you'll only be able to put £12,000 into a cash ISA. If you're holding cash, this is the last year to shelter it all in one.

For 2026 to 2027, gov.uk gives £20,000 as the most you can save across your ISAs. HMRC's policy paper on the change says the annual cash ISA subscription limit will reduce to £12,000 for individuals aged under 65 from 6 April 2027, within an overall ISA limit that stays at £20,000. For people aged 65 or over, the cash ISA limit remains £20,000.

Can you carry forward your Capital Gains Tax allowance?

Realise gains within your £3,000 CGT exempt amount - it's a fraction of what it used to be, but it's still free money if you use it before 5 April. Ignore it and it's gone forever.

HMRC's figures show the annual exempt amount at £3,000 for 2026 to 2027, compared with £6,000 for 2023 to 2024 and £12,300 for 2022 to 2023. Its Capital Gains Manual says the exempt amount relates to one tax year only, and if it is not used it cannot be carried forward or back. If the gains in question are on investments, see tax when you sell stocks and shares.

What is the Business Asset Disposal Relief rate now?

Thinking about selling the business? Get ahead of it - Business Asset Disposal Relief is now 18%, up from 14%. Structuring and timing a sale matters more than ever so talk to someone before you're mid-negotiation.

Gov.uk gives the rate as 18% on gains on qualifying assets disposed of from 6 April 2026, and 14% for disposals between 6 April 2025 and 5 April 2026. The relief has conditions that must be met for at least 2 years up to the date of sale. For shares, those include being an employee or office holder of a trading company, and holding at least 5% of the shares and voting rights where the shares are not from an EMI scheme. See also plan tax around your exit.

These tips are easily overlooked, meaning you're leaving money on the table if nobody's watching the calendar for you.

Allowances, rates and the rules behind them change from year to year, and what is worth doing depends on your own income and plans, so this is general information rather than advice on your facts. If you want the numbers run for your situation, see how we work or talk to us.