November Budget 2025: Sensible Pre-Budget Considerations

With many rumours flying around suggesting potential announcements in the November Autumn Budget, it can be worrying to know if there are measures you should be taking now. Whilst it is never a good idea to take action based on rumours, there are still some sensible steps that you can take now ahead of any potential changes:

1. UTILISE YOUR ISA ALLOWANCE

If you have the money available, you can open an ISA with up to £20,000 this tax year, protecting this money from income and capital gains tax.

Assuming you won’t need access to your money for at least 5 years, a stocks and shares ISA will allow you to invest your money, exposing it to potential gains that historically have been typically higher than cash returns. That said, don’t forget that investments can fall as well as rise and you may get back less than your original investment.

Should you need your money within 5 years however, a cash ISA may be more appropriate.

Opening an ISA prior to the Autumn budget will ensure you take advantage of the current ISA allowance of up to £20,000.

2. MAKE A PENSION CONTRIBUTION

There have been rumours regarding potential changes in relation to the tax relief system.

With an annual allowance of £60,000, this is the most you can save into your pension pots in a tax year before you have to pay tax. Under the current system, pension contributions get tax relief at your highest marginal rate and therefore, for a higher rate tax payer, a £60,000 contribution could cost you only £36,000 or only £33,000 if you are an additional rate tax payer.

If you’re worried that changes may be made to the current system and were considering making pension contributions this tax year anyway, then you may want to consider doing so prior to the budget if you have the money available now.

Before making any contributions however, remember that pension savings typically cannot be accessed before age 55 (rising to age 57 from 2028).

3. GIFTING TO REDUCE POTENTIAL INHERITANCE TAX LIABILITY

If it’s right for your individual circumstances, you could consider utilising your £3,000 individual annual gifting allowance or make other, potentially exempt transfer, gifts to assist with limiting any potential liability upon death.

It’s important to make sure that any measures you take are appropriate for you and we’d strongly recommend that you to seek specialist advice before making any final decisions.

The above actions are simply suggestions that you may wish to consider now in order to benefit from the current rules, but they do not represent personal advice. These measures may or may not be appropriate for your individual circumstances and therefore we would recommend seeking financial advice before making any decisions.