What to do before 5 April — and what to save for after — to make the most of the Budget changes

As we approach the final quarter of the tax year, this is the ideal moment to pause, plan and take advantage of the opportunities available before some rules change in April. With the latest Budget announcements bringing some significant adjustments, your timing between now and 5 April really can influence your tax bill and your future financial security.

Here are three practical steps to consider before 5 April, and three smart decisions to leave until after.

Three Things to Do Before 5 April

1. Use your lower-rate dividend band before the tax rise

Dividend tax for basic-rate taxpayers increases from 8.75% to 10.75% next year.
If you still have space in your lower-rate band, taking dividends before 5 April keeps them taxed at the current, lower rate.

And even if you are a higher rate tax payer, if you have room in the band to take more, consider bringing dividends forward to pay at 33.75% and not 35.75%.

A simple timing shift but an immediate saving.

2. Complete any planned company closure before BADR increases

If you’re closing a limited company and taking final profits as capital, completing before 5 April is essential.

The Business Asset Disposal Relief (BADR) rate on qualifying gains is set to rise from 14% to 18%.

For those winding down or restructuring, this can be a significant and straightforward tax saving.

3. Delay capital expenditure if your AIA is fully used

If you’ve already used your Annual Investment Allowance (AIA) this year, any extra equipment purchases won’t receive the full 100% deduction.

Waiting until after 6 April, when the allowance resets, gives you access to full relief again often worth thousands for larger items.

Three Things to Do After 6 April

1. Consider the new 40% First Year Allowance (FYA)

From April, the Government plans to introduce a 40% First Year Allowance for certain assets that don’t qualify for AIA.

Here’s the simple version:

Some items don’t meet the AIA rules, often fixtures, integral features or longer-life assets. These items will, under the new scheme, receive a 40% upfront deduction in year one. The remaining balance will continue to be relieved over time through writing-down allowances.

If you are planning to buy an asset that won’t qualify for AIA, waiting until after 6 April could give you stronger upfront tax relief.

2. Plan ahead for the Cash ISA changes coming in 2027

The Cash ISA allowance will reduce from £20,000 to £12,000 in April 2027.
There’s no immediate action required, but early awareness helps you shape a more resilient long-term savings plan.

3. Seek advice on the new rules bringing pensions into the inheritance tax (IHT) conversation

One of the most significant shifts confirmed in the Budget is the way pensions will be drawn into the inheritance tax framework. For many business owners, pensions have long been a highly efficient tool for passing on wealth often sitting outside the estate for IHT purposes.

With this changing landscape, it’s important to understand:

  • How new rules could affect the way pensions are assessed on death
  • Whether your current pension arrangements remain efficient
  • If nominations, trusts or beneficiary planning need updating
  • How to protect family wealth under the revised regime
  • Whether alternative strategies such as lifetime gifting or adjusting where you hold long-term investments might better support your goals

This is an area where early, personalised advice is essential. The right planning now can ensure your pension remains a powerful tool for long-term family protection, not a surprise tax liability.

And of course, alongside these tips, it’s always worth reviewing your broader income mix. A tailored blend of salary, dividends and pension contributions can significantly improve your take-home pay while supporting long-term planning.

Final Thoughts

December to April is a crucial window for small business owners. A few well-timed actions before 5 April, paired with thoughtful planning afterwards can strengthen your position, reduce worry, and set you up for a confident, organised and financially secure year ahead.