This guest blog is written by Dental and Medical Financial Services. For more information about their services visit their website here
This blog does not constitute advice and advice should be sought in all instances before acting on it. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Past performance is not a reliable indicator of future performance.
For many healthcare professionals, this time of year offers a valuable opportunity to step back from the day-to-day demands of clinical work and take stock of their financial position.
With the 2026/27 tax year now well underway, a mid-year review can be about much more than checking investment performance. It is an opportunity to assess how recent tax changes, upcoming legislation, and changes to your circumstances could affect your wider financial plan.
For high earners, the cost of doing nothing can be quite high.
For many healthcare professionals, this time of year offers a valuable opportunity to step back from the day-to-day demands of clinical work and take stock of their financial position. With the 2026/27 tax year now well underway, a mid-year review can be about much more than checking
investment performance. It is an opportunity to assess how recent tax changes, upcoming legislation, and changes to your circumstances could affect your wider financial plan.
For high earners, the cost of doing nothing can be quite high.
Tax planning needs to be an ongoing process
One of the most important developments already impacting higher earners is the increase in dividend tax rates from April 2026. The basic dividend rate has risen to 10.75%, while the upper rate is now 35.75%, with the additional rate remaining at 39.35%.
For healthcare professionals who operate through limited companies, it is increasingly important to consider how and when profits are extracted, rather than simply taking dividends as and when required.
Meanwhile, frozen tax limits mean people pay more tax over time without making more real money. The Personal Allowance remains £12,570, while the higher-rate threshold remains £50,270, and the Personal Allowance begins to taper once adjusted net income exceeds £100,000.
A mid-year financial review allows your financial team to look at projected income for the year and consider whether pension contributions, investments, remuneration, or other planning strategies could help manage your overall tax position.
Look beyond pensions and ISAs
Current tax conditions are also changing for wealth held outside pensions and ISAs. From April 2027, separate rates of Income Tax will apply to property income, at 22%, 42%, and 47% for basic, higher, and additional-rate taxpayers, respectively. Savings income will also be subject to
increased rates from the same date.
For clients with substantial property holdings, this is a good reason to review whether existing properties remain suitable within their wider investment strategy. Property can still play a valuable role in diversification, income generation, and long-term wealth creation, but the right approach requires careful consideration of investment objectives, cashflow, tax, borrowing, and ownership structure.
For those considering entering the property market or established investors, a Property Portfolio Review can provide a useful assessment of performance, risk exposure, and future growth opportunities.
Look beyond pensions and ISAs
Current tax conditions are also changing for wealth held outside pensions and ISAs. From April 2027, separate rates of Income Tax will apply to property income, at 22%, 42%, and 47% for basic, higher, and additional-rate taxpayers, respectively. Savings income will also be subject to
increased rates from the same date.
For clients with substantial property holdings, this is a good reason to review whether existing properties remain suitable within their wider investment strategy. Property can still play a valuable role in diversification, income generation, and long-term wealth creation, but the right approach requires careful consideration of investment objectives, cashflow, tax, borrowing, and ownership structure.
For those considering entering the property market or established investors, a Property Portfolio Review can provide a useful assessment of performance, risk exposure, and future growth opportunities.
Pensions are no longer just about retirement
Pension planning also deserves particular attention. From 6 April 2027, most unused pension funds and pension death benefits will fall within the estate for Inheritance Tax purposes.
For higher-earning professionals with substantial pension benefits, this represents a significant
change in the role pensions can play within estate planning. The traditional strategy of simply preserving pension assets for beneficiaries may need to be reconsidered along with other investments, lifetime gifting, protection, and estate-planning strategies.
This does not mean pensions have suddenly become less valuable; far from it. It just means their role needs to be more carefully considered as part of the whole financial picture.
Use a mid-year review to manage risk
Financial planning is not simply about trying to maximise returns or minimise tax. It is about making sure your finances remain aligned with your circumstances and objectives as those circumstances change.
For a healthcare professional, that could mean reviewing practice income, personal expenditure, pension funding, investments, protection, property, and estate planning together.
It could also mean identifying areas where you have become unnecessarily exposed – whether through concentrated investments, excessive property debt, insufficient liquidity, or an outdated business structure.
Don’t wait until the end of the tax year to discover that your financial plan needs to change. A mid-year review gives you time to identify risks, make informed decisions, and take action while there is still plenty of the tax year ahead. With further changes already on the horizon, regular communication between you and your financial team has never been more important.