Tony Wickenden, Technical Connection

Among the many possible actions for individuals to consider as the end of the tax year approaches is to check whether the full ISA (and, where relevant, JISA) allowance has been fully utilised.

This will especially be the case, given that dividends and savings income above the relevant allowances are fully taxed, as are realised capital gains that exceed the £3,000 annual exemption. And, following the 2025 Budget, 2% will be added to the dividend tax rates for basic and higher rate taxpayers from 6 April 2026 (taking rates to 10.75% and 35.75% respectively and remaining at 39.35% for additional rate taxpayers) and 2% added to the rates of tax on savings income for all taxpayers from 6 April 2027. Despite the well-known tax efficiencies of ISAs there will be many for whom there will still be scope to invest.

But not everyone who can, will.

So why not? Well, most obviously they may not have the funds to invest. They might just lack a reminder. Another reason may be concern over timing for what may be a large one-time investment.

If that’s the case, then what better time to suggest that, for the next tax year, the investor commits to an appropriate regular (e.g. monthly) investment into an ISA? The “single investment” timing anxiety will be removed and the benefit of tax efficiency and pound cost averaging secured.

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This article is intended for regulated financial advisers and investment professionals only.

The statements and opinions expressed in this article are those of the author and don’t necessarily reflect those of Wealthtime or any of its employees. The company does not take any responsibility for the views of the author.

The above is based on understanding of current law and HMRC practice, and Government proposals regarding future law and HMRC practice, as at 23 February 2026, and are presented for general consideration only and no action must be taken or refrained from based on the content of this article alone. Each case depends on its own facts and advice is essential. Accordingly, neither Wealthtime nor Technical Connection, nor any of their officers or employees can accept any responsibility for any loss occasioned as a result of any such action or inaction.

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