14th February 2026
For some people the end of the tax year coming means it is time to make important decisions. To help we are publishing some useful tips from Ann Bowes a personal finance expert with The Private Office.
This month, as we head towards the end of the tax year, we thought you might like some tax tips. The fact that many of our tax allowances have been frozen for years and will continue to be frozen until 2031 means that making sure you use what you have has never been more important.
First, Inheritance Tax (IHT). IHT is renowned for being one of the most hated taxes in the UK and the amount we are paying is increasing year on year. The latest figures show that the amount of IHT that has been paid between April to December 2025 was £6.6 billion, £0.2 billion higher than in the same period the year before. The fact that the basic nil rate band of £325,000 has been frozen since April 2009 and the main residence allowance of £175,000 has stayed the same since 2017 hasn't helped - and they are set to remain frozen until at least 2031!
With the changes coming to the inheritance of unused pension funds from April 2027, it's only going to get worse. Understanding the allowances that are still available could make a real difference to the amount of tax your estate pays, and help ensure more of your wealth ends up with your loved ones.
Read: Inheritance Tax planning - strategies to protect your wealth
https://www.theprivateoffice.com/insights/how-wealthy-avoid-iht-tax
Whether you are approaching retirement, or are already there, it's still desirable to make sure you are as tax-efficient as you can be, but there's no ‘one size fits all' solution. The good news is that once you are drawing an income in retirement, you still have a number of tax allowances that can be maximized with careful planning. As well as pensions, you can also make tax efficient withdrawals from other investments and savings accounts. At the end of the day, keeping more of your income in your pocket matters even more once you are no longer earning. And it's never too soon to start planning for that eventuality.
Read: Tax efficient retirement strategies
https://www.theprivateoffice.com/insights/top-tax-tips-retirement
For cash savers, there are also a few allowances available, which means that most people can earn at least some interest tax free. But the Personal Savings Allowance (PSA) has remained at £1,000 for basic rate taxpayers and £500 for higher rate taxpayers since its inception in April 2016 - whilst the ISA allowance has remained unchanged since April 2017. But of course, the cash ISA allowance will be going down to £12,000 for those aged under 65, from April 2027 - so make the most of it whilst you can.
Read: How much savings interest is tax free?
https://www.theprivateoffice.com/insights/how-much-savings-interest-tax-free
ISAs remain one of the most generous and valuable tax breaks available, yet the rules surrounding them seem to grow ever more complicated. With the cash ISA allowance due to be cut from April 2027, even though the overall £20,000 ISA allowance will stay in place for those willing to invest, it's no surprise that many savers feel uncertain about what to do next. Complexity can be paralysing, and there's a real risk that people simply do nothing for fear of getting it wrong. That would be a costly mistake.
Used well, ISAs allow you to shelter savings and investments year after year, which can sometimes mean having hundreds of thousands of pounds entirely free from income tax and capital gains tax. We have put together a guide which helps to cut through the noise. It explains the different types of ISA available, how the allowances work, and why making your ISA could make a meaningful difference to your long-term finances.
Read: ISAs explained
https://www.theprivateoffice.com/tax-planning/isas-explained
Hopefully some of these tax tips have been useful. Before we go however, let's take a look at some of the current news affecting savings and investments.
First there’s some more disappointing news from National Savings & Investments (NS&I) as the state-owned bank has cut the rates it is paying on its easy access accounts which will come as a blow to savers who value the security that NS&I offers. The good news is that with an increase to the Financial Services Compensation Scheme (FSCS), there might be plenty of other alternative options available that can keep your cash safe.
Read: Disappointment for those wedded to NS&I
https://www.theprivateoffice.com/news/disappointment-those-wedded-nsi
Onto the investment markets and 2026 has started with a bang.
Stock markets across the world have generally been positive so far this year, although the US has lagged behind as technology companies saw some declines. As ever, this illustrates the benefits of having a diversified investment portfolio, not only geographically, but in terms of asset classes as well, such as silver and gold. Whilst these precious metals are traditionally considered a safe haven, recent fluctuations in their value reminds us that these are not risk free or guaranteed, and investors need to remain proactive and adaptable, but overall prepared to be in it for the long term.
Read: Maduro and Greenland fail to rain on markets' parade
https://www.theprivateoffice.com/insights/maduro-and-greenland-fail-rain-markets-parade
That’s it from us this month. We’ll be back in March.
In the meantime, if you are looking for help and advice regarding your own personal finances, especially in the lead up to the end of the tax year, why not get in touch. If you have £100,000 or more in pensions, savings and investments and would like to receive a free initial cash flow forecast consultation, up to the value of £500, call The Private Office on 0333 323 9065 or contact us at https://www.theprivateoffice.com/contact-us.
Anna
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