The November Budget Is Coming - Here are some suggestions

16th October 2025

with a budget on 26 November likely to include some tax rises you may want to quietly reshape your financial strategy.

Since Rachel Reeves' budget is expected to target higher earners, investors, and some businesses, here's a breakdown of what to think about depending on your situation.

Anticipate the Likely Tax Changes

Based on Treasury briefings and expert forecasts

Capital Gains Tax (CGT) could be aligned more closely with income tax rates.

Dividend allowances may shrink again (they're already down to £500).

Higher-rate income thresholds might stay frozen until 2028 (a "stealth" tax rise).

Pension tax relief for higher earners could be reduced.

Wealth and inheritance tax reform is possible (especially relief caps).

Adjust Before the Budget (If Possible)

If you have flexibility:

Realise gains now — if you're planning to sell investments or property, consider doing so before CGT rates rise.

Max out ISA contributions — £20,000 tax-free wrapper shields both capital gains and income from future hikes.

Use pension allowances — contributions are tax-deductible and reduce taxable income.

Shift assets to lower-income family members (within legal limits) to use their allowances.

After the Budget — Focus on Resilience

Once details are confirmed:

Rebalance: Move more into tax-efficient investments (ISAs, VCTs, EIS, pensions).

Diversify globally: UK taxes apply only to UK-sourced income/gains; overseas funds can sometimes be structured efficiently.

Track inflation-linked assets — inflation and higher taxes erode real returns. Consider gilts linked to CPI, infrastructure funds, or inflation-protected ETFs.

Review debt
If mortgage rates stay high, prioritise debt repayment — higher taxes can reduce disposable income faster than expected.

Higher income taxes
Shift income sources to tax-sheltered accounts; use salary sacrifice into pensions.

Higher CGT/dividend taxes
Hold growth assets inside ISAs/pensions; favour accumulation funds over distributing ones.

Inflation stays >3%
Own real assets (infrastructure, property REITs, commodity ETFs).

Markets turn volatile Keep 6-12 months of cash/liquid reserves; avoid forced selling in downturns.

Don't Act Rashly
Stay calm pre-budget — markets often overreact to leaks.

Watch the fine print — many tax rises are phased in from the next tax year (April 2026), so you often have months to adjust.

Think long-term — even under higher tax regimes, disciplined saving and diversification usually outperform emotional reactions.