Know where you are and what you need: be ready!
02 November 2025Of any year, 2025 has been rife with Budget speculation as to what might change to raise more taxes. The Chancellor is, as they say ‘stuck between a rock and a hard place’ (in part self-imposed), and the gap seems to be widening between taxes raised and government outgoings. The last Budget aimed to raise about £40bn, and this now seems to be short by £30bn (estimated). I think in part the speculation is not because taxes might need to be raised, it’s because they will rise.
Although not guaranteed, from a timing perspective it needs to be remembered that a Budget is usually an announcement of the tax and rule changes that will occur from the start of the next tax year, starting 06 April 2026, or indeed tax years in the future, which gives a bit of time to prepare if you are affected by any proposed changes.
Any Budget announcements will usually include the ‘headline grabbers’, and then once the changes have been analysed, a few ‘devils in the detail’ might come forward which were not immediately obvious, but can still have significant outcomes, either in their own right or in conjunction with other changes. The application of Inheritance Tax on pensions from April 2027 and the income tax charge on beneficiaries on death above age 75 (effectively a double tax charge) might be one example of this.
Returning to the recent Budget speculations, I am not sure that any topic (indeed even those in manifesto pledges) has been ‘off the table’ for discussion (and remember this is not the current administration’s last Budget). Therefore, preparing for specific changes is not likely to be possible. However, knowing where you are with your financial planning and existing arrangements now is certainly possible – and sensible.
Regular financial ‘health-check’ reviews are recommended and usually well worthwhile in looking at existing arrangements in conjunction with household incomes, current tax charges, inflation rates, and individual needs for capital and income into the future. Having a good understanding of where you are, and perhaps where you want to be at a point in the future, can add real value in being ready for future changes. Money rarely stands still, and with the Budget ahead, one thing is for sure, things are going to change. Be as ready as you can.
No individual advice is provided during the course of this blog.
Keith Churchouse FPFS
Director
CFP Chartered FCSI
Chartered Financial Planner
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