Start the New Tax Year Strong: Six Smart Financial Moves You Can Make Today

The new tax year has officially begun – and now is the perfect opportunity to get a head start. At Cleveden Park Wealth, we believe that careful, early planning can make a big difference to your financial outcomes and help you stay ahead of any potential tax burdens.

There are a number of valuable steps you can take right now to cut your tax bill and build long-term financial security.

Here are six tax-smart strategies you can consider today:

1. Maximise Your Tax-Free Allowances Early

Starting regular monthly contributions into a Stocks and Shares ISA is a fantastic habit to form at the beginning of the tax year. Already have a direct debit set up? Great! Now is a good time to review it and see if you can increase your contributions.

If not, starting now allows you to benefit from pound-cost averaging, smoothing out market ups and downs over time. Plus, you’ll maximise your ISA allowance and allow your investments more time to grow through the power of compounding.

Tip: The earlier you act, the more of your allowance you can utilise over the year.

2. Move Investments Into Tax-Efficient Wrappers

If you have investments held outside an ISA or pension, consider moving them inside a tax-efficient wrapper like a Stocks and Shares ISA or a Self-Invested Personal Pension (SIPP).

Through a process known as share exchange (sometimes called Bed & ISA or Bed & SIPP), you can sell your investments and rebuy them within a tax-efficient account. This shields any future growth from capital gains and dividend tax.

Remember, you have a £3,000 capital gains tax (CGT) allowance this year – use it wisely when restructuring investments.

3. Plan Around Potential Income Thresholds

With fiscal drag pulling more individuals into higher tax brackets, it’s worth checking if you might exceed a tax threshold this year.

If you expect a pay rise or a change in income, consider increasing pension contributions to bring your taxable income down. Using ISAs for savings and investments can also shield future income from tax.

Proactive planning today could prevent a painful tax bill tomorrow.

4. Defer Income Where Possible

If you anticipate being in a lower tax bracket in the near future – perhaps due to retirement – it may make sense to defer receiving some income now.

Consider fixed-term savings options that delay interest payments, helping you manage when income is taxed. Options like Active Savings can provide flexible solutions while you plan your next steps.

5. Manage Your Pension Withdrawals Carefully

If you’re already drawing pension income, particularly through income drawdown, it’s vital to plan withdrawals thoughtfully to avoid breaching income tax thresholds unnecessarily.

Sometimes, using tax-free ISA withdrawals to supplement income can be more efficient than taking larger taxable pension withdrawals. Careful cashflow planning ensures your retirement income remains as tax-efficient as possible.

6. Make the Most of Gifting Allowances Early

Estate planning starts with small, consistent steps. Utilise your Inheritance Tax (IHT) allowances early in the year. The sooner you make larger gifts, the sooner they begin to fall outside your taxable estate (after the 7-year rule).

Additionally, consider using your child’s Junior ISA allowance early in the year. It’s a powerful way to save for their future – tax-free.

If you plan to make regular gifts from income, starting earlier in the tax year allows you to give away more over time without increasing your IHT exposure.

Get Ahead with Cleveden Park Wealth

Starting your tax planning early is one of the smartest financial moves you can make. At Cleveden Park Wealth, our experienced advisers are ready to help you make the most of the tax year, whether it's maximising your ISA contributions, refining your pension strategy, or planning for the future.

Contact us today to arrange a consultation and take control of your financial future with confidence.