Tax Smart For Aberdeen’s Energy Professionals

If someone offered you a perfectly legal way to make better use of the tax allowances available, would you take it?

Most of us would.

Yet every year thousands of people miss out on valuable tax allowances simply because they do not know what is available, or they leave planning until the end of the tax year when opportunities have already passed.

If you work in Aberdeen's energy sector, your financial picture probably looks a little different to most. Bonus structures can be large but unpredictable, contractor and IR35 status can complicate pension planning, and the wave of redundancies and restructuring across the industry in recent years and months means severance payments and career transitions are a real issue for a lot of people – not just a hypothetical one. All of that makes it worth reviewing whether your finances are structured efficiently for your specific circumstances, not just generically tax efficient.

There is another reason to review your finances this year. The Government has confirmed that from 6 April 2027 most unused pension funds will generally be included as part of an estate for Inheritance Tax purposes. While pensions remain one of the most tax efficient ways to save this change means it is worth looking at your retirement and estate planning together rather than separately.

Here are a few simple checks that may be worth considering.

1. Could you be sitting on an unused tax shelter?

ISAs remain one of the simplest ways to save and invest tax efficiently.

Any interest dividends or investment growth earned inside an ISA are currently free from UK tax which makes them an attractive option for many people saving for the future. ISA rules and tax treatment can change, and the value of investments held within one can still rise or fall.

If you have received an annual bonus or have cash sitting in a savings account it may be worth considering whether it is held in the most tax efficient way for your circumstances.

2. Does your pension still make sense after the 2027 inheritance tax changes?

For many people their pension is their biggest financial asset after their home – and in Aberdeen, where property values have fallen rather than risen over the past decade the pension may matter even more to your long term financial picture than it would elsewhere in the country.

Pensions continue to offer valuable tax relief on contributions and tax efficient growth which is why they remain an important part of long-term financial planning – though tax relief depends on individual circumstances and pensions and tax rules can change.

With the changes due from April 2027, it is also worth thinking about how your pension fits into your wider estate planning. A regular review can help you understand whether your retirement savings continue to support your long-term goals.

3. Could you and a colleague hold the same investments – yet pay very different tax?

Choosing suitable investments is important, but so is where they are held.

Two people can own similar investments yet pay different amounts of tax because they are held in different types of accounts. Reviewing how your investments are structured may help you make better use of the tax allowances and reliefs available.

4. Why does it feel like a pay rise hasn’t made you any better off?

Many professionals across Aberdeen's energy sector have seen their salaries increase in recent years. Tax thresholds have been frozen since 2021 and that freeze now runs to 2028. The personal allowance across the UK has stayed at £12,570 per year throughout, so as salaries rise with inflation and bonuses, more income gets pulled into higher tax bands – even though it may not feel like you’re any better off. This is often referred to as fiscal drag, and it is catching more and more taxpayers every year.

A financial review can help you understand whether you are making full use of the allowances and reliefs available under the current rules. Do not wait until the end of the tax year. One of the biggest mistakes people make is leaving tax planning until March. Reviewing your finances regularly gives you more time to consider your options and make informed decisions.

f you would like to understand how the current tax rules apply to your own circumstances the team at Welsh and Taylor Wealth would be happy to arrange an initial conversation and help you explore the options available. Please get in touch to arrange a conversation.

Tax Smart for Aberdeen’s Energy Professionals in 2026: Frequently Asked Questions

• Why is tax planning particularly important for energy professionals in Aberdeen?

  Energy professionals often have more complex financial circumstances than many other employees, with variable bonuses, contractor arrangements, IR35 considerations, redundancy packages and career transitions all affecting financial planning. Reviewing your finances regularly can help ensure you are making the most of the tax allowances and reliefs available for your specific situation.

• Are pensions still a tax-efficient way to save after the planned 2027 inheritance tax changes?

  Yes. Pensions remain one of the most tax-efficient ways to save for retirement, offering potential tax relief on contributions and tax-efficient investment growth. However, with changes expected from April 2027 regarding unused pension funds and inheritance tax, it is increasingly important to consider your pension as part of your wider retirement and estate planning strategy.

• How can I make sure my bonus is used in the most tax-efficient way?

  A bonus can provide a valuable opportunity to review your financial plans. Depending on your circumstances, options may include using available ISA allowances, making pension contributions, or reviewing how savings and investments are structured. The right approach depends on your income, goals and wider financial position.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only. All information is correct at the time of writing and is subject to change in the future. Any references to changes introduced by the Finance Act 2026, including the inclusion of unused pension funds within the scope of Inheritance Tax, are based on legislation that has received Royal Assent and is now law. The eventual tax treatment will depend on individual circumstances and the detailed application of the legislation in practice. This information is provided for general guidance only and should not be relied upon as the sole basis for financial planning decisions.

This article was published in August 2026. Tax treatment, allowances and legislation can change over time. Please seek professional advice before making financial decisions based on this information.