12 million risk losing tax breaks over tax year end confusion

• Nearly a quarter (23%) of UK adults – 12.3 million people – don’t factor in tax year end deadlines when investing
• Almost a fifth (17%) don’t understand the significance of tax year end, with younger adults, and the self-employed most unaware
• Investment anxiety holds seven in 10 (70%) back, with fears of losing money and a lack of experience cited as key barriers
• interactive investor’s Tax Year Zen campaign is empowering investors to take action before 5 April

Millions of adults risk losing out on key tax-saving opportunities, as new research from interactive investor (ii), the UK’s second-largest platform for private investors, reveals widespread confusion around the significance of the tax year end deadline. 

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Nearly a quarter of adults (23%) – equivalent to 12.3 million people – fail to consider the deadline when making investment decisions, while almost a fifth (17%) admit they don’t understand what tax year end is, or its significance.

interactive investor’s latest research* is part of its Tax Year Zen campaign, which explores the stress and negativity people feel about managing their investments. The campaign aims to empower and inform savers by providing clear, practical guidance on tax-efficient investing, so that they can make confident decisions. 

Camilla Esmund, Senior Manager at interactive investor, said: “It has perhaps never been more important for our money to work harder for us, and we are now in a crucial time where consumers can maximise the tax efficiency of their saving. However, our research shows that millions of people risk missing out on valuable tax breaks simply because they don’t realise the clock is ticking, or how the end of the tax year ‘applies’ to them and their financial situation. Interestingly, we can also see a gender gap when it comes to awareness of this deadline, with one in five (20%) women unaware of the tax year end, compared to 13% of men. 

“With the tax year end deadline approaching, failing to act in time could mean leaving money on the table - whether that’s missing tax relief on pension contributions or losing out on ISA allowances.

“We believe managing your financial future doesn’t have to be stressful or complicated. However, our research shows that uncertainty about personal finances and investments often prevents people from making smart money decisions or even starting to invest.”

The worries and woes of investing 

The research also highlights that stress is a major factor contributing to the confusion around investing in general, with seven in 10 (70%) of adults admitting they hesitate to start or continue investing because of nervousness surrounding their finances. 

In fact, interactive investor found that the primary drivers of this nervousness are a lack of experience (20%), and difficulty in choosing the right investments (19%).

As a result, many are putting off investing in favour of other financial priorities, such as going on holidays (30%) and making home improvements (20%). 

Camilla Esmund adds:"Understandably, investing won’t be everyone’s primary financial goal, or priority – especially as more immediate costs can, and sometimes have to take priority. But if people are shying away from investing because of nervousness or stress, this is a real problem. Shying away from investing can severely limit your financial potential and stability.

“Unfortunately, we know that many people, especially younger adults, feel overwhelmed when it comes to investing. But we shouldn’t be in a situation where intimidation is a barrier to investing, which is why educational campaigns like ‘Tax Year Zen’ which tries to break these topics down and make them accessible, are so important. 

“The current tax year ends on the 5 April 2025 and marks the deadline for certain activities, such as making contributions to tax-advantaged accounts – like ISAs or pensions – to ensure that they qualify for tax benefits in that year. With this in mind, our goal is to take the stress out of investing by offering clear guidance and tools that makes life easier for investors – helping them to take action ahead of the deadline.

“But this is also a reminder of a broader issue when it comes to money and our emotions. Almost one quarter of respondents cited (23%) feeling stressed when simply looking at their finances, and a staggering 17% believe that absolutely nothing would help them feel calm and confident about managing their savings and investments over the next year. This is extremely concerning, and something we need to sit up and take notice of. This is why we are so passionate about empowering savers.”

A quick checklist for investors looking to achieve Tax Year Zen

• Top up your ISA: to make use of the current tax year allowance, £20,000, make sure you’ve topped up your ISA and added cash before the tax year ends – even if you’ve not decided how to invest it. 
• Build a nest egg for your child: if you’ve got children, you can also open a Junior ISA and begin saving for when they turn 18. This can help with those big expenses they might face in early life – like university, or their first car. 
• Make pension contributions: tax year end is a good time to reassess your pension and make any last-minute contributions. Unlike ISAs, you can roll over any unused allowance from the past three years and claim tax relief. 
• Use your CGT allowance: this handy exemption allows you to realise £3,000 in tax-free gains every year. However, it resets on 6 April and if you don't use it, you lose it. So, if you have shares that aren't held in tax wrappers, consider using your CGT exemption before the tax year ends.
• Get dividend savvy: if you invest outside of a SIPP or ISA, such as a Trading Account, your personal dividend allowance is £500. Before making any new investments in your Trading Account, consider making them in your ISA where you have an uncapped ISA dividend benefit.

Methodology 

*The research was conducted by Censuswide, among a sample of 2,000 Nationally representative UK respondents (Aged 18+). The data was collected between 15.01.2025 - 17.01.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.