How to Maximise the New Tax Year

Everyone makes a fuss at the end of the tax year. Last-minute ISA or IRA top-ups, rushed pension contributions, and a mild panic about whether you’ve missed something important.

But barely anyone talks about the start of the tax year, which is a shame as that’s arguably when you can make the biggest difference.

The early part of the tax year is when you’ve got the full range of tools and allowances available to you. More time to plan. More time for your investments to grow. And more opportunity to make smart, tax-efficient decisions.

Turn Your Allowances Into Financial Goals

There’s another side to this too: we should be viewing the new allowances not just as limits to stay within, but as targets to aim for.

Treating your ISA limit, pension allowance, and income thresholds as targets to hit adds focus and gives you a clear, measurable goal to work towards.

For example, you might currently be contributing £10,000 a year to your ISA. But if your target is to reach the full £20,000 allowance, that’s a £10,000 gap to plan for – which breaks down to around £834 a month.

Having that number forces you to look more closely at your income and expenses:

• Are there any areas where you can cut back and redirect funds? (Though cutting expenses will only get you so far)
• More importantly, how can you increase your income to bridge the gap?

By doing this exercise, you may realise it’s time to work towards a pay rise, or finally start that side hustle to get closer to your target. And that kind of clarity only comes when you’re being intentional with your finances.

Key Tax Allowances for 2025/26 – AKA Your Money Goals

Here are the main UK tax allowances you can start planning around (If you’re outside the UK, repeat this exercise with your local tax thresholds).

Income Tax Thresholds

• £12,570: Personal allowance (tax-free)
• £12,571 – £50,270: Basic rate (20%)
• £50,271 – £125,140: Higher rate (40%)
• £125,140+: Additional rate (45%)

ISA Allowance – £20,000

Tax-free savings and investing.

Pension Contributions – Up to £60,000

Build your retirement pot with tax relief. The actual limit depends on your income and taper rules.

Capital Gains Tax (CGT) – £3,000

Profit on investments or property (non-residential) before tax kicks in. Gains above this are taxed at:

• 18% (basic rate)
• 24% (higher rate)

Dividend Allowance – £500

Tax-free dividend income. Above this:

• 8.75%, 33.75%, or 39.35% depending on your income bracket

Trading Allowance – £1,000

Earn up to £1,000 from a side hustle or self-employment tax-free.

Actionable Next Steps

Here’s how to start using these allowances to your advantage:

ISA: Use It Early, Not Late

Want a steady, halal income option? Our flagship Cur8 GBP Income Fund is addressing the need for halal home finance for Muslims and is also IFISA-eligible.

Pension: Don’t Wait to Plan for Retirement

• Investing over £250k? Contact us and we’ll connect you with specialists who manage portfolios for high-net-worth clients.
• For smaller pension pots, platforms like Wahed Invest and Simply Ethical offer Sharia-compliant options worth exploring.

Trading Allowance: Build That Halal Side Income

Thinking of using your £1k side hustle allowance this year? We set a community challenge earlier this month to do exactly that. If you’re ready to take action, check out our step-by-step guide and start building that extra halal income today.

Final Words

The start of the tax year is a great opportunity to take control of your finances, set clear goals, and start building wealth in a smart, halal way. The earlier you start, the more options you give yourself.

To keep learning, sign up to our newsletter and get access to our free email course: The 5 Money Mistakes Keeping Muslims Poor (and How to Fix Them). It’s packed with practical tips to help you build better financial habits and grow your income the halal way.