Tax Takes Centre Stage in Election Year

With the Prime Minister announcing a general election on July 4, the focus is shifting to the financial policies of the main parties, especially regarding taxes. Taxes are a key issue, with high tax levels being a major campaign topic. Currently, we’re in the middle of a tax-threshold freeze until 2027/28, along with cuts to reliefs and allowances, which are reducing individual wealth and increasing the number of higher-rate taxpayers.

Inflation has come down to within 1.5 percentage points of the Bank of England’s 2% target, from its double-digit high in 2022. However, the May inflation rate is still at 2.3%, making a cut to interest rates in early summer less likely.

With the election date set, it’s important to use all available tax reliefs and allowances while we know their current impacts. This tax year, you might consider reviewing your higher income child benefit charge, taking advantage of the relaxed ISA savings rules, and thinking about the changes to tax advantages for furnished holiday lets planned for next year.

In our updated Tax Planning Tips for 2024/25, we offer strategies to help you with personal and family planning, savings and investments, property, retirement, estate planning, business, and employment. With examples and tips, you’ll find guidance to help you make better tax planning decisions and reduce your tax liabilities.

For more information on these topics and to view please see our full set of updated Tax Tips for 2024/25