Why More People Than Ever Need Financial Advice

By Marcus Perks, Independent Financial Adviser | Supportive Financial Planning.

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.

While this may sound daunting, there is a silver lining: these changes also represent a clear and growing opportunity—for individuals to take control of their finances, and for professional advisers to offer vital, strategic guidance.

Let’s take a closer look at what’s changed and why now is the time to seek expert financial advice.

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

That’s a significant rise in tax liability—and a growing need for proactive, personalised financial planning.

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 will pay dividend tax for the first time

• Others will face increased tax bills, especially at higher rates

This change especially impacts those who rely on income from shares, investments, or small business profits—and underscores the value of tax-efficient structuring.

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. This affects those selling investments, second properties, or business interests—and without careful planning, they could face unnecessary losses.

Inheritance Tax: A Growing Concern

For years, the nil-rate band and residence nil-rate band for Inheritance Tax have been frozen. Combine that with rising property values, and the number of estates subject to IHT is rising fast.

• In October 2024, the OBR estimated that 5.2% of estates would face IHT

• By 2029/30, that figure is expected to almost double to 9.5%

Why? A mix of factors, including:

• The frozen IHT thresholds through to at least 2029/30

• The inclusion of unused pension pots within IHT from 2027

• Reduced business relief for investments over £1 million

• Planned changes that will cut AIM share relief from 100% to 50% by 2026

These are critical shifts that could reshape the legacy plans of many families—and without professional advice, many won’t be prepared.

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. From income and dividend taxes to CGT and inheritance planning, the financial planning landscape is evolving—and with it, the demand for expert guidance is rising.

At Supportive Financial Planning, we specialise in helping individuals and families navigate these changes, reduce their tax liabilities, and plan confidently for the future.

Whether you’re:

• Unsure how the recent Budget affects your plans

• Concerned about inheritance tax

• Looking to structure investments more tax-efficiently

• Planning for retirement or legacy

—we’re here to help.

Don’t Wait Until the Tax Bill Arrives

Now is the time to act. The earlier you seek advice, the more options you'll have to mitigate tax and protect your financial future.

📞 Call us on 0345 337 3414.
📧 Email us at cliveperks@supportivefp.co.uk.
🌐 Or request a free consultation by clicking on our "schedule a call' button.

Disclaimer: This article is for general information only and does not constitute financial or tax advice. Please consult a qualified adviser for personalised recommendations. Source: Techlink - Budget Statements & Economic News: Budget 2024.