This new tax year starting on 6 April brings a range of changes that could affect your financial planning.

The start of the new tax year will see many allowances and tax bands frozen once again. In reality these freezes are tax increases as the government has effectively allowed inflation to determine how much greater a proportion of your income and estate should pass to the Treasury. Had the allowances and bands all been increased in line with inflation, then they would be rising by 6.7% for 2024/25, using the standard yardstick of the Consumer Price Index (CPI) inflation to the previous September.

However, not all elements of the tax system are frozen:

Tax planning is often focused on the end of the tax year, however, there is a case to be made for ‘year beginning planning’. For example, you may be able to save tax over the year by rearranging ownership of investments with your spouse or civil partner in April. Similarly, if you place funds in an Individual Savings Account (ISA) or a pension at the start of the tax year, you will avoid having to consider any income or CGT on that element of your investments for the rest of 2024/25.