Why More People Than Ever Need Financial Advice

The October 2024 Budget brought with it a series of sweeping changes to the UK tax landscape — changes that are already having a real impact on people's finances. Add to that the ongoing freeze in tax allowances and thresholds, and we're seeing more people than ever being pulled into higher tax brackets, paying more on their investments, and facing increasing complexity around their financial planning.

More People Are Paying More Tax

The freezing of tax thresholds and allowances — combined with inflation and rising asset values — means more people are being dragged into the tax net. By 2027/28, the numbers speak for themselves:

• 18 million more people will be paying basic rate income tax
• 12 million more will fall into the higher-rate bracket
• 1.5 million more will pay additional-rate tax

Dividend Tax Is Hitting More Investors

In 2024/25, the reduction in the dividend allowance means that around 73% of people receiving dividends will be negatively affected — many paying dividend tax for the first time.

Capital Gains Tax Is No Longer a Niche Issue

With the CGT exemption reduced in 2024/25, an estimated 250,000 more people will now be liable for Capital Gains Tax — affecting those selling investments, second properties, or business interests.

Inheritance Tax: A Growing Concern

For years, the nil-rate band and residence nil-rate band for IHT have been frozen. Combine that with rising property values, and the number of estates subject to IHT is rising fast. By 2029/30, the figure is expected to almost double to 9.5% of estates.

With Greater Tax Comes Greater Need for Advice

The bottom line is this: more people are paying more tax, and the complexity of tax rules is only increasing. At Supportive Financial Planning, we specialise in helping individuals and families navigate these changes, reduce their tax liabilities, and plan confidently for the future.