Prepare for possible budget changes if you can before it's too late

17th September 2025

With tax reforms and spending cuts on the horizon in the budget on 26 November 2025 here are some suggestions on how individuals and households can prepare.

Review Your Income Mix
The freeze on income tax thresholds means more people will be dragged into higher tax bands as wages rise.

What to do:
Consider shifting income into tax-free vehicles like ISAs.

Balance salary, dividends, and pension contributions to optimize tax efficiency.

Plan Property Moves Carefully
Stamp Duty and council tax reforms are being considered, especially for higher-value homes.

What to do:
If you’re buying or selling, aim to complete before April 2026 to avoid potential hikes.

Factor in possible new property levies when budgeting.

Act Early on Capital Gains
Capital Gains Tax (CGT) rates may rise, and reliefs could shrink.

What to do:
If you’re planning to sell shares, property, or a business, consider accelerating the sale.

Use current CGT allowances while they’re still available.

Maximise Pension Contributions
Pension tax reliefs may be restricted, and unused pensions will face Inheritance Tax from April 20273.

What to do:
Contribute as much as you can under current rules.

Review your annual and lifetime allowances.

Update estate plans if pensions are part of your legacy.

Prepare for Inheritance Tax Reforms
Lifetime gifting caps and tighter taper relief are being considered.

What to do:
Make strategic gifts now, before new limits kick in.

Consult a financial advisor to restructure your estate plan.

Stay Informed & Flexible
Sign up for budget-day summaries and webinars from trusted financial firms like Saffery or Thorne Widgery.

Keep an eye on confirmed changes for April 2026 and beyond such as the rollout of Making Tax Digital and changes to Business Asset Disposal Relief.

https://www.thornewidgery.co.uk/autumn-budget-2025-predictions-what-could-change-and-how-to-prepare/

https://www.saffery.com/insights/articles/autumn-budget-2025-what-to-expect/