People tax planning in Oswestry and Cheshire will need to be aware of the financial changes coming this year. Many of these will start to take effect from April 6, when the new tax year begins.
In January, the nationwide energy price cap rises by 0.2%, whilst February will see the first Bank of England meeting of the year to decide on interest rates, currently set at 3.75%. In early 2026, motorists could become eligible for compensation if they took out a car finance deal and were unfairly treated.
In April, households will see a rise in utility and council tax bills, whilst state pension and benefits are set to be increased, along with the state pension age rising to 67. Elsewhere, dividend tax rate changes are taking effect, rising to 10.75% and 33.75% for basic and higher rate taxpayers respectively.
As HMRC moves away from paper letters, a new digital system to simplify tax reporting is also being rolled out under the banner Making Tax Digital. April, moreover, sees important changes to inheritance tax with tax relief scrapped for farmers and homeworkers.
May will see more support unveiled for residential property tenants, with new protections from excessive rent increases and deposits. Later in the year, the fuel duty freeze is set to end in September, followed by a new £2.20 duty which is being imposed on vaping products from October. Also confirmed are a new £17 travel tax for visitors to EU countries, and a freeze in rail fares and prescription charges.
