Actions now to mitigate what might be in the budget - Maybe

2nd October 2025

While the exact details of the 26 November 2025 Autumn Budget won't be known until the Chancellor speaks, people and businesses can take some prudent steps now to prepare and, in some cases, mitigate possible impacts.

Here are some of the main areas where individuals might act early:

Income Tax & Fiscal Drag

Check allowances: Make sure you are making full use of existing allowances (ISA, pension contributions, marriage allowance transfers).

Salary sacrifice: Using employer pension contributions or other salary sacrifice schemes may reduce taxable income and limit the effect of threshold freezes.

Capital Gains Tax (CGT)

Use your annual exemption: If you have assets (shares, property, funds) with gains, consider realising some before November to use the current annual allowance, which could be cut.

Bed & ISA: Selling assets and rebuying them within an ISA "wraps" them in a tax-free environment.

Timing disposals: If you're planning to sell a second property, business, or large investment, completing before potential rate hikes could save significant sums.

Inheritance Tax (IHT)

Lifetime gifts: Current rules allow you to gift up to £3,000 per year (plus carry-over from one previous year) free of IHT, along with small gift exemptions. Larger gifts can be exempt if you survive seven years. Acting sooner starts that "seven-year clock."

Trust planning: Some families use trusts for succession planning, though advice is essential.

Property & Housing

Stamp Duty: If you're considering a house move, bringing forward completion could avoid higher stamp duty or new land-based taxes.

Council Tax bands: Harder to plan for, but owners of high-value homes should budget for possible higher charges.

Business & Corporate Planning

Review profits and timing: Companies expecting higher levies might consider bringing forward dividend payments or profit realisations into the current tax year.

Capital investment: If allowances (like full expensing) are at risk of tightening, bringing forward investment could lock in existing reliefs.

Pensions & Retirement

Maximise relief: Higher-rate relief on pension contributions is often rumoured to be at risk. Making contributions before the Budget may secure the current treatment.

Tax-free lump sum: If changes are expected, reviewing drawdown plans with an adviser may help lock in today’s rules.

General Positioning

Diversify tax wrappers: ISAs, pensions, and premium bonds all have different tax treatments, which reduces exposure to any single Budget change.

Stay liquid: Having some flexibility in cash reserves allows you to act quickly if new rules come in with transitional windows.

Important caveat: Any action should be based on your personal circumstances, and many changes may not happen or could take effect only from April 2026. For significant moves (like large asset disposals, property transactions, or pension restructuring), professional financial advice is strongly recommended before acting.

Here’s a practical Pre-Budget 2025 Checklist you could run through before 26 November.

Pre-Budget 2025 Personal Finance Checklist

1. Income Tax & Allowances

Have I used my ISA allowance (£20,000) this tax year?

Am I claiming the Marriage Allowance (if eligible)?

Can I use salary sacrifice (pension, cycle-to-work, childcare) to reduce taxable income?

2. Capital Gains Tax (CGT)

Do I have investments with gains I could sell before November to use my CGT allowance?

Have I considered a Bed & ISA to protect future growth from tax?

Am I planning to sell a second property or large investment soon — and should I complete before possible rate rises?

3. Inheritance & Gifting

Have I used my £3,000 annual gift exemption this year?

Have I made smaller gifts (up to £250 per person) that qualify as exempt?

Should I start the seven-year clock on larger gifts now?

4. Property Decisions

If I’m planning a house purchase or sale, should I bring it forward to avoid higher stamp duty or new land/CGT rules?

Have I factored in potential higher council tax on high-value homes?

5. Business & Company Planning

Should I bring forward dividend payments or profit distributions?

Would it make sense to accelerate capital investment before potential changes to allowances?

Have I checked my business’s exposure to possible windfall or sector-specific taxes?

6. Pensions

Have I maximised my pension contributions while higher-rate tax relief is still available?

Do I need advice on drawdown timing or accessing my tax-free lump sum?

7. General Positioning

Do I have a mix of savings across different tax wrappers (ISAs, pensions, premium bonds)?

Am I keeping enough liquid savings to act quickly if transitional rules are announced?

Have I reviewed my overall tax planning with an adviser if I’m making large financial moves?

Tip: Many Budget measures only take effect from April 2026, but some could be immediate (e.g. asset sales, allowances). Acting early can lock in today’s rules.