Five key areas to plan ahead for new tax year – ‘worth checking’

It could also be worth thinking about anything that can be put aside for grandchildren to help towards future costs such as education or getting married.

Mr Farrugia said: “A Junior ISA can provide tax efficient investments on up to £9,000 per year. However, it is worth noting that these are accessible at age 18, so be mindful of how much you want them to receive and when.”

Make use of the marriage allowance

The marriage allowance enables people to transfer £1,260 (10 percent) of their personal allowance to their husband, wife or civil partner.

Mr Farrugia said: “This means that if you earn under the personal allowance of £12,570, you can pass on 10 percent of your personal allowance to your partner if they are a basic rate taxpayer.

“This could save you up to £252 in the current tax year and the claim can be backdated to cover any tax year since 2018/19.”

Continue paying into a pension

Even if a person is no longer working, they can still contribute to their pension.

Mr Farrugisa said: “If you’re under the age of 75, you can contribute £2,880 per tax year and receive £720 tax relief from the Government. In addition, this falls outside the estate for inheritance tax purposes as well.”

Unlock the power of gifting

The threshold at which people start to pay inheritance tax (IHT) is due to be frozen – a move most unwelcomed by many, as the threshold has remained the same since 2009 despite soaring house prices and inflation rates.

This means the nil-rate band (inheritance tax-free allowance) will remain at £325,000 until 2028. However, there are ways people can reduce their exposure to the high tax.