The use-it-or-lose-it list
Figures below are the commonly applying ones for recent tax years — always confirm the current year's numbers on GOV.UK before acting, and note some allowances taper or vary with income.
| Allowance | Typical amount | Rolls over? |
|---|---|---|
| ISA allowance | £20,000 per adult | No — gone at midnight on 5 April |
| Lifetime ISA contribution (for the 25% bonus) | £4,000 (inside the £20,000) | No |
| Junior ISA | Separate allowance per child | No |
| Pension annual allowance | Up to £60,000 (tapered for high earners; lower if you've flexibly accessed a pension) | Partially — carry forward, three years |
| Capital gains tax annual exempt amount | A few thousand pounds — has been cut repeatedly; check current figure | No |
| Dividend allowance | Small and repeatedly cut; check current figure | No |
| IHT annual gift exemption | £3,000 | One year only, then lost |
| Marriage allowance | Transfers ~10% of a personal allowance between spouses where one is a non-taxpayer | Claims can be backdated up to 4 years — but each year still expires |
The February-to-April sequence
- Top up the ISA — or just shelter cash. The money only needs to be inside the wrapper by 5 April, not invested. If you're undecided about investments, contributing cash and choosing later beats losing the allowance — and beats rushing a decision. (ISAs explained.)
- LISA holders: hit the £4,000 if you can. That's a £1,000 government bonus per year that doesn't return. (LISA vs pension.)
- Review pension contributions against the annual allowance — and after a high-income year, check carry forward from the previous three. Model what a top-up really costs after relief in the pension tax relief calculator.
- Check the cliff edges. Adjusted income just over £100,000 (personal allowance taper, childcare entitlements) or in the child benefit charge zone? A pension contribution or salary sacrifice before 5 April can legitimately pull you back under — maths individual enough to be a classic one-off advice question.
- Investors outside wrappers: use the CGT exemption deliberately. Realising gains up to the exempt amount, or moving assets into an ISA ("bed and ISA" — see the ISA guide), tidies taxable holdings. Mind the 30-day rule on rebuying the same asset.
- Couples: check allowances are in the right hands. Marriage allowance claims, and holding income-producing assets with the lower-rate taxpayer, are unglamorous but real.
- Make the £3,000 IHT gift if estate planning matters to you — plus last year's £3,000 if unused. (IHT basics.)
- Self-employed: size the year-end pension top-up once profits are visible — the whole playbook is in pensions for the self-employed.
The deadline is not a salesperson
"Use your allowance before it's gone" is also the finance industry's best marketing line, and every March it sells products people wouldn't otherwise buy. Losing one year's allowance is a small cost; buying an unsuitable product is a large one. If a decision needs more thought, shelter cash in the wrapper or let the deadline pass — both are respectable outcomes.
Common questions
Does unused ISA allowance roll over to next year?
What is pension carry forward?
Is doing something before 5 April always better?
Sources and further reading
GOV.UK — ISA rules and limits · GOV.UK — pension annual allowance and carry forward · GOV.UK — CGT annual exempt amount · GOV.UK — marriage allowance · GOV.UK — IHT gift exemptions
About this guide: general education only — not regulated advice, tax advice or a personal recommendation, and FinancialAdvisor.co.uk is not an FCA-authorised firm. Allowance figures change (several have been cut in recent years) and depend on circumstances — verify current numbers on GOV.UK. For planning tailored to you, consult an accountant or FCA-authorised adviser.