Turning Tax Year End into ‘Tax Year Zen’

• Over half of UK adults feel stressed or overwhelmed about their personal finances and investing 
• Seven in 10 are hesitant to start or continue to invest due to the stress related to managing investments
• Only around one-quarter are aware that tax year end is a deadline to finalise tax-efficient savings

interactive investor (ii), the UK’s second-largest investment platform for private investors, releases new research revealing that over half (53%) of UK adults feel stressed about their current personal finances in the lead up to the end of the tax year.

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A survey of 2,000 UK adults, conducted by Censuswide on behalf of interactive investor*, which forms part of the launch of a new campaign, ‘Tax Year Zen’, found that additional stress arises when it comes to planning for the longer term, with more than half feeling particularly stressed (51%) when thinking about investing for their future. 

Hesitation to start or continue to invest – which 70% say is due to stress related to managing investments – is especially prevalent among younger people, with a fifth (20%) of adults in their twenties finding the thought of investing too stressful to make a start.

ii’s Tax Year Zen campaign aims to better understand the negative emotions and associations that people have when it comes to managing their investments, and also to empower savers – providing them with the knowledge and tools to make their money go further through tax efficiency, without the added stress. This includes a range of jargon-busting educational content on the website and on social media, and pointing investors towards the wealth of tools and guidance interactive investor has to offer. Last year, the platform also launched its ii Managed ISA, for less-confident investors.

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 – such as ISAs or pensions – to ensure that they qualify for tax benefits in that year.  

Outlining the campaign, Camilla Esmund, senior Mmanager at interactive investor, says: “The research has spoken; stress is a barrier to investing, and its impact is perhaps even more significant than you’d imagine. Today, we reveal new data which compares the stresses around tax year end and financial planning for the future to the broader stresses of everyday life, for example, UK adults find planning their finances more stressful than being at work (17% compared to 14%) or using public transport (10%) – and this is staggering. Building your investments and feeling in control of your money should be a rewarding experience; not worse than commuting in the dreaded rush hour!”

“Let’s be honest: keeping on top of your savings and investments can be stressful at the best of times, but this is heightened at this time of year with ISA season upon us and the looming deadline of tax year end. And although some may find the frequent deadline reminders a useful incentive, we’re conscious that this can also bombard others. Every investor is different. We need to make sure there aren’t investors left on the sidelines. To do this, we need to understand the problem, and that’s why we have explored this further.

“At interactive investor, we are committed to making investing simpler and more accessible for everyone. Our market-leading experts produce a range of guidance and content to help educate and inform; breaking down the jargon. We want investors to understand the ‘how’ and ‘why’ behind smart financial moves – making the right ones for them. We want consumers to feel empowered and confident in their investment decisions. This campaign helps us understand the scale of the problem but also speaks directly to those who are less confident with their investments, and what to do ahead of tax-year end.”

A clear engagement gap

When it comes to investing money for the future, interactive investor found a substantial gender gap in how this stress is felt, with just over four in 10 (44%) men feeling overwhelmed, compared to 60% of women.  

The research also found that over a third (36%) don’t believe they have enough disposable income to save or invest for the future and a similar amount (33%) say the cost-of-living crisis is still impacting their ability to invest. 

However, we also know that a large amount of stress comes from a lack of guidance and education around investing – with around one in five (21%) stating that they simply didn’t know where to start with investing.

Within ii’s research, only around one-quarter (28%) were aware that tax year end is a deadline to make the most of tax-free allowances for the current tax year, with 17% saying they have no idea what the term means, and a further 13% believing it only applies to wealthy people.

Commenting on the data, Camilla Esmund said: “The run-up to tax year end is a crucial time for savers and investors because many tax allowances operate on a ‘use it or lose it’ basis, meaning that failing to use the allowances before the deadline means missing out on valuable tax reliefs. 

As tax year end approaches, there are opportunities to make your money work even harder for you through tax-efficient planning – and there are ways to seek help to make the process less stressful.”

Other key findings 

• Contextualising with daily life stresses: UK adults find planning their finances more stressful than being at work (17% compared to 14%) or using public transport (10%)
• Londoners say that thinking about their finances is more stressful than getting the Tube (17% and 8% respectively)
• Some 19% of the sample said the sheer amount of information available is overwhelming, which is leading to avoidance and inaction
• Trust is a significant factor: almost one-quarter of our research sample (23%) said they’d feel calmer and more confident about managing their savings and investments if they knew who to trust for financial guidance
• One in five (20%) would feel better if they received clear, step-by-step guidance, or if they had a better understanding of savings and investment products. 

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 – such as 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: once the new tax year starts, your capital gains allowance will reset to £3,000. It can’t be rolled over either. So, if you’ve been planning a sale, consider selling before the tax year ends to make the most of your allowance before it shrinks
• Get dividend savvy: if you invest outside a SIPP or ISA, such as in 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.