6 sensible steps to protect your finances ahead of the 2025 Autumn Budget
With the 2025 Autumn Budget on the horizon, there’s growing speculation that Chancellor Rachel Reeves may announce significant reforms , particularly to property taxes, pensions, and inheritance tax. While nothing is confirmed, the fiscal update on 26th November is expected to focus on raising revenues against the backdrop of a fragile global economy and weak UK growth.
If you’re looking to protect your wealth and plan ahead with confidence, here are six practical steps you might want to consider now – just in case.
Selling a property? Don’t delay
There are rumours that changes to Stamp Duty or Capital Gains Tax (CGT) could be on the cards – including CGT potentially being applied more widely to property sales.
If you’re in the process of selling a home that currently qualifies for CGT relief, it may be wise to aim for completion before the 2025 Autumn Budget announcement. Acting now could help ensure you benefit from the current rules while they remain in place – but be very careful before accepting a lower price or paying over the odds just to get the sale done!
Review your pension contributions
Pension rules are often under review at Budget time – with possible changes to tax relief rates or the tax-free lump sum rules.
While we don’t know what will be announced, one thing remains true: pensions remain one of the most tax-efficient ways to save for the future. If you have scope to top up your pension, it may be worth doing so sooner rather than later.
That said, be very careful about withdrawing funds early. While it might seem sensible to access more now in anticipation of future restrictions, drawing from your pension means you no longer benefit from tax free growth in the fund, so always seek professional advice before making a move.
Make the most of your ISA allowance
Speculation is mounting around potential reforms to the ISA system, including a possible reduction to the current £20,000 annual limit for cash ISAs.
While it’s only conjecture at this stage, it’s worth making full use of your allowance under the current rules. Stocks and Shares ISAs may offer better long-term growth than cash ISAs, but remember they come with risk and aren’t suitable for short-term access needs. Professional advice should always be taken when making investment decisions like this.
Use available tax allowances while you can
Capital Gains Tax allowances have already been reduced, and some believe there’s more to come.
Each individual currently has a £3,000 CGT annual exemption, and couples can also transfer assets between them tax-free, effectively doubling their tax-free gains.
It’s also worth maximising your other allowances:
- £20,000 annual ISA allowance
- Up to £60,000 pension contribution allowance (depending on earnings)
- £500 dividend income allowance (outside an ISA)
Making full use of what’s available now can help shield more of your wealth from any future tax changes. The rules can be complex and contain traps for the unwary, so don’t act without getting advice first.
Plan ahead for inheritance tax
Inheritance tax (IHT) may well be another area under review. Recent changes extended IHT to cover certain pensions, and further measures – such as reducing thresholds or altering gift rules – could follow.
If you’re considering lifetime gifting, doing so under the current rules may lock in today’s more favourable treatment. Just be sure to balance generosity with practicality – giving away too much too soon could have unintended tax consequences or impact your financial security in later life.
Don’t panic – get advice
While it’s sensible to prepare, it’s just as important not to rush into decisions based on speculation.
Even if reforms are announced in November at the 2025 Autumn Budget, they may not come into effect straight away. Most people will have time to consider their options, so take a measured approach and, where appropriate, speak to your accountant or financial planner before acting.
Need tailored advice?
If you’re unsure how the upcoming Budget might affect your situation, or would like to explore your tax planning options, we’re here to help. Get in touch with the IN Accountancy team and we’ll be happy to support you with clear, expert advice.
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