Now’s the time…2025/ 2026 Allowances, Tax Vouchers and Mortgage Reviews

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As we settle into the new tax year, it’s a great time to consider how best to make use of the refreshed allowances now available. Acting early not only maximises the tax benefits but also gives your investments the valuable advantage of extra time to grow.

Before we dive into the planning side of things, we’re also pleased to share an exciting development. We’ve recently partnered with Saturn, a specialist AI platform designed specifically for the financial services industry. As part of this, we have started using Carrington CoPlanner, our new AI-powered notetaker, during both in-person and online meetings.

This tool enables us to stay fully present in our conversations, without needing to scribble away (a personal win if, like me, your handwriting leaves much to be desired!).

Of course, your privacy remains a top priority, and we’d like to reassure you that CoPlanner (Saturn) adheres to the highest data protection and confidentiality standards.

Now onto the new tax year…

MAXIMISE YOUR ISA ALLOWANCES

Taking advantage of your ISA allowance early in the tax year is a simple yet powerful way to build long-term, tax-free wealth.

For the 2025/26 tax year, the allowances remain as follows:

  • Adult ISA – £20,000 per person
  • Junior ISA (JISA) – £9,000 per child (under 18)
  • Lifetime ISA (LISA) – Up to £4,000 per year, with a generous 25% Government bonus added annually (up to £1,000). There are various factors to consider before setting up a LISA, so please do get in touch if you would like to know more.
PENSIONS

The annual pension contribution allowance remains at £60,000 (or 100% of earnings if lower). However, for those with taxable income above £260,000, this allowance may be tapered down, so it’s important to check where you stand.

You can also:

  • Contribute up to £2,880 (£3,600 with tax relief) each year for those without earnings
  • You can also contribute on behalf of your children (under 18) up to £2,880 per year.
WHY INVEST EARLY?

Starting early can make a real difference when it comes to investing. It’s not just about how much you save, but how long your money has the opportunity to grow. By investing sooner, you give yourself the chance to benefit from compounding – where any growth or interest earned begins to generate growth of its own. Over time, this “growth on growth” effect can significantly boost the value of your savings, making a real difference to your  future goals.

TAX VOUCHERS

Tax vouchers for the 2024/25 tax year are now coming through from the investment platforms. As always, we’re very happy to pass these directly to your accountant to help make things as straightforward as possible.

We may already have their details on file, but do let us know if you’d like us to send them on your behalf – and just confirm that their contact information is still up to date. If we don’t hear from you, we’ll simply send the documents directly to you instead.

MORTGAGES – A CHANGING LANDSCAPE

With the recent cut to interest rates, some lenders are starting to reduce their mortgage rates. If you’re planning to remortgage soon or considering a new property, do let us know – we can connect you with someone we trust to help explore your options.

As always, we will continue to speak with you about these opportunities throughout the year, but if you want to get ahead of the game, please do get in touch now.

 

IMPORTANT: This publication has been prepared for information purposes only by Carrington Investment Consultants Ltd. The value of investments, and any income generated from them, will be affected by interest rates, exchange rates, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which it invests. Investors should be aware that the value of units may well fall as well as rise, is not guaranteed and that past performance is not a guide to future performance. Different funds carry different levels of risk and investors may not get back the full amount invested. Carrington Wealth Management is a trading style of Carrington Investment Consultants Limited which is authorised and regulated by the Financial Conduct Authority. Registered office: One Chapel Place, London W1G 0BG. Registered in England, number 3193939. This email and any accompanying documents contain confidential information intended for a specific individual which is private and protected by law. If you are not the intended recipient, any disclosure, copying, distribution or other use of this information is strictly prohibited. You are also requested to advise us immediately if you receive information which is not addressed to you.  Data Source: Financial Express. Copyright © Carrington Wealth Management. All rights reserved.