The new tax year is upon us, and with it comes a wave of changes to UK finances and the tax system. Below is a comprehensive guide to everything that’s changing and how it could affect you.

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Tax allowance

This new tax year, the personal allowance, which is the annual amount of income you can earn without having to pay tax, is rising by 0.5% from £12,500 to £12,570.

Meanwhile, the threshold for paying the higher rate of income tax increases from the current £50,000 to £50,270 a year. These rates are expected to be frozen for the next five years.

Investors should also note that the annual ISA allowance will remain at the current £20,000 limit this tax year.

And like the personal allowance, there are rumours that it could also be frozen for the next five years, which makes it especially important to make sure … Read more

If I had a lump sum of £3,000 to invest today, I’d buy IAG (LSE: IAG) shares. I’d invest this amount because I believe it’ll give me some exposure to the airline without taking on too much risk.

There are a couple of reasons why I would buy the stock today. For a start, I think the company looks cheap, compared to its potential. For its 2019 financial year, the British Airways owner reported a net profit of €1.7bn. If it can return to this level of profitability, the IAG share price is sitting at a prospective P/E of around 7.5. 

However, just because a stock looks cheap isn’t necessarily a good reason to invest. Indeed, before investing any money in a cheap business, I think it’s always best to try and understand why the market has such a low opinion of the enterprise in the first place.

IAG share