Rachel Reeves lines up second raid on your Cash ISA in April – see how you can fight back

It's time to fight back and with the end of the financial year less than three weeks way on April 5, there’s no time to lose.

A leading tax expert has identified seven ways Britons can cut their tax bills before the deadline. This will help offset any ISA tax losses by either maxing out today’s allowance or using other tax breaks.

In her autumn Budget, Reeves froze the annual ISA allowance until 2030. Originally set at £20,000 in April 2017, this means it will have been frozen for at least 13 years, shrinking its real value due to fiscal drag.

Now she’s reportedly considering slashing the annual Cash ISA allowance to just £4,000 in her Spring Statement on March 26.

The aim is to push savers into Stocks and Shares ISAs to boost the UK economy, but it’s also a tax grab that could disproportionately hit cautious savers, particularly pensioners.

If Reeves acts, this would be her second assault on tax-free savings in months.

Laura Hutchinson, managing partner at tax specialists Forbes Dawson, has identified seven ways to fight back, warning: “With the tax year ending on April 5, prompt action is essential.”

Use this year’s ISA allowance. Even if Reeves targets Cash ISAs, she can’t touch this year’s allowance. ISAs operate on a "use-it-or-lose-it" basis, so it’s vital to use as much of your £20,000 allowance as possible before the deadline.

If you have a partner, they can use their £20,000 allowance too, while children or grandchildren qualify for a £9,000 Junior ISA. Don’t forget the Lifetime ISA, which includes a bonus worth up to £1,000.

Maximise pension contributions. Payments into a pension attract tax relief at 20%, 40%, or 45%, depending on your tax band. This is effectively free money from the government.

Contributions also lower your taxable income, potentially dropping you into a lower tax band. This could help you maintain or increase your Personal Savings Allowance (PSA), which allows basic-rate taxpayers to earn £1,000 in savings interest tax-free (£500 for higher-rate taxpayers). If employed, check company pension salary sacrifice schemes for additional savings.

Protect your personal allowance. Earning over £100,000 means losing £1 of your £12,570 personal allowance for every £2 of income, resulting in a punishing 60% tax rate.

To mitigate this, consider making pension contributions or charitable donations to reduce your taxable income below £100,000.

Plan for capital gains tax (CGT). Each person can take up to £3,000 of capital gains from shares, property and other assets, tax free. The annual exempt amount has been slashed from £12,300, but is still valuable.

If you have investments outside an ISA, realise gains gradually to use this allowance. Spouses can also transfer assets between them to maximise their combined £6,000 CGT allowance.

Use your dividend allowance. You can take up to £500 in dividends tax-free. If you hold shares outside an ISA, use this allowance then consider shifting them into an ISA, where all future returns will be sheltered from tax.

Plan for inheritance tax (IHT). Take advantage of annual gift allowances to reduce your estate’s value. You can gift up to £3,000 tax-free each year, with unused allowances carried forward for one year. Couples can double up.

You can also make unlimited small gifts of £250 per person to others, and gifts when loved ones get married too. These could then be tucked into their own ISAs to grow tax-free.

Consider other tax-efficient investments. Beyond ISAs, other tax-efficient options include Enterprise Investment Schemes (EIS), Seed Enterprise Investment Schemes (SEIS), and Venture Capital Trusts (VCTs). These offer tax relief and CGT deferral or exemption.

However, they are higher-risk investments and only suitable for sophisticated investors. Seek professional advice.

These tax strategies won’t work for everyone, but even using just one or two could bring big savings – and be one in the eye for Rachel Reeves.