End of tax year planning: key actions advisers should prioritise before the 5th of April

In the following exclusive for IFA Magazine, Isabelle Smith, Tax Manager at Azets, shares key considerations for advisors to raise with their clients ahead of the end of the tax year.

As the 5 April tax year approaches, advisers have a narrow window to take steps that can help clients reduce their income tax bill for the 2025/26 tax year and improve longer‑term inheritance tax (IHT) efficiency. Advisers should use the remaining weeks before 5 April to raise the following actions with clients:

Donations before 5 April – Charitable donations made before 5 April 2026 can reduce this year’s income tax bill.

For clients with variable income from year to year, a ‘top-up’ donation before 5 April can secure a higher rate or additional rate relief for 2025/26.

It is important to ensure there is sufficient tax to “cover” the Gift Aid uplift (a point often missed by retirees).

Donate appreciated shares or property instead of cash

Certain assets attract both income tax relief and exemption from capital gains tax when donated directly to charity.

Advisers and clients should identify shares standing at a gain and assess whether donating these is more efficient than selling and gifting cash.

Check the charity can accept shares (some will require transfers through specific platforms).

Complete transfer instructions early, as share transfers can take several days.

Pre‑fund a Donor Advised Fund (DAF) Before 5 April – This is one of the most efficient ways to “bank” charitable tax relief in a year with higher income.

Open the DAF before 5 April (Note: professional advisors’ capacity tightens near year-end)

Contribute cash or assets by 5 April, securing income tax relief immediately.

Set intentions later, allowing time to choose charities or involve family in decision‑making post‑year‑end.

Review Wills and consider charitable legacies – This time of year is also a valuable opportunity to prompt clients about the importance of having a valid and up-to-date Will. Charitable legacies can be a tax-efficient way to support causes clients care about, alongside providing for family members.

Charitable gifts made through a Will are entirely exempt from Inheritance Tax (IHT), meaning the full value passes to the chosen cause without reducing what is left to beneficiaries.

If a client leaves 10% or more of their net estate to charity, the IHT rate on the remainder of the estate is reduced from 40% to 36%, potentially lowering the overall tax burden.

Key trends and data points from Remember a Charity

Legacy giving

1 in 3 people with Wills include a charitable gift (32%) and over one third of those who haven’t are open to doing so (35%).

(figures from OKO / Remember A Charity, Stages of Change Report 2026)

Every day, on average, more than 100 people across the UK leave a gift to charity in their Will. This raises more than £4 billion for good causes each year.

Professional Advisors and legacy giving

Six out of 10 (60%) professional advisers report an increase in demand for advice on estate or inheritance planning since changes to inheritance tax (IHT) were announced in last year’s Autumn Statement, according to our research.³

What’s more, 65% think that fiscal incentives on charitable giving will become even more important to their clients as they seek to mitigate rising IHT liabilities. 

With the Government’s plans to draw inherited pension pots into the scope of IHT from April 2027, experts are predicting that around twice as many estates will be liable for IHT by 2031, prompting more households to think carefully about how they preserve and pass on wealth.