Brits are being urged to act quickly as the end of the financial year approaches, with experts warning that savers and investors have less than seven weeks left to make full use of their tax-free allowances. Many of these allowances cannot be carried over, meaning anything unused before midnight on April 5 will be lost.

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said now is the time to take tax planning seriously. She added: "The end of the 2025-26 tax year at midnight on April 5 is approaching fast, and at a time when tax efficiency has rarely mattered more, savers and investors should ensure they do not miss out on valuable tax-free allowances."

She warned that a long list of tax changes introduced in recent years is pushing more people into higher tax bands and increasing the amount they pay on savings, investments and rental income.

She said: "The UK has been hit with a series of tax changes in recent years that will significantly increase personal tax burdens and erode disposable incomes - making the case for tax-efficient saving and investing even more compelling."

Ms Haine also pointed to Chancellor Rachel Reeves' decision in the Autumn Budget to extend the freeze on income tax thresholds until 2031, meaning rising wages will pull millions into higher tax bands.

She also mentioned the upcoming increases to dividend tax in April 2026 and higher taxes on savings interest and rental income from 2027.

Investors have also been hit by sharper Capital Gains Tax rates since October 2024 and by previous cuts to the CGT allowance and Dividend Allowance.

Future changes include bringing unspent pension assets into inheritance tax from 2027 and a new £12,000 cap on Cash ISA allowances for people under 65.

Ms Haine said: "With so many tax changes to weigh up, getting your financial house in order - and maximising allowances while they remain in their current form - is essential for anyone looking to mitigate their rising tax burden."

She added that most tax allowances cannot be carried forward to the next tax year, warning: "It really can be a case of 'use it or lose it'."

One of the biggest opportunities for households comes from rules that allow married couples and civil partners to transfer savings and investments between them without triggering tax.

Ms Haine said: "As personal tax allowances come under increasing pressure, married couples and civil partners have a handy tax advantage over their unmarried peers. This enables couples to maximise two sets of allowances and ensure assets liable for tax are held by the partner subject to lower rates of tax."

This includes using two sets of Personal Savings Allowance, two Dividend Allowances and two CGT exemptions. Couples can also double their ISA allowances, meaning they can shelter £40,000 this year and another £40,000 next year.

However, Ms Haine cautioned that assets transferred between spouses become the legal property of the recipient. "This is an unwise move if the relationship is not on stable ground," she added.

Many couples may also qualify for the Marriage Allowance, which lets a lower-earning partner transfer up to £1,260 of unused Personal Allowance to their spouse.

Ms Haine said: "This can reduce their tax bill by up to £252. This is because the basic-rate taxpayer would normally be charged 20% income tax on that portion of their salary, so 20% of £1,260 is £252."

Couples can also backdate their claim for up to four tax years if eligible, worth over £1,000 in extra savings.

Marriage Allowance is only available where neither partner is a higher-rate taxpayer.