As Chancellor Jeremy Hunt prepares to unveil his Autumn Budget on November 6th, millions of Britons are being urged to take immediate action to shield their hard-earned money from potential tax raids and policy shifts. Financial experts are sounding the alarm, warning that proactive steps taken now could save families thousands of pounds in the coming year.
1. Maximise Your Pension Contributions Before the Axe Falls
Speculation is rife that the government may tinker with pension tax relief to raise funds. The current system, which allows higher-rate taxpayers to claim back 40% on contributions, is a prime target. Financial advisers are urging individuals to maximise their annual allowances before any potential reduction. With the pension lifetime allowance already abolished, making substantial contributions now could be a shrewd long-term move.
2. Utilise Your ISA Allowance: A Tax-Free Sanctuary
The Individual Savings Account (ISA) remains one of the most efficient shelters for your savings and investments from the taxman's grasp. With an annual allowance of £20,000, using this tax-free wrapper is more critical than ever. Whether you choose a Cash ISA for security or a Stocks and Shares ISA for growth potential, securing your money inside this vehicle before the budget announcement is a defensive must-do.
3. Review Your Property and Investment Portfolios
Rumours are swirling about possible reforms to Capital Gains Tax (CGT) and Inheritance Tax (IHT). Some fear CGT rates could be aligned with income tax rates, significantly increasing the bill on profits from second homes or investment sales. Now is the time to review your assets and consider whether it's prudent to realise any gains under the current, more favourable rules.
4. Act on Marriage Tax Allowance and Other Breaks
Thousands of eligible couples are still missing out on the Marriage Tax Allowance, a perk that lets you transfer £1,260 of your Personal Allowance to your spouse. This can save you up to £252 a year. This is just one of many little-known reliefs that could be streamlined or cut altogether. Applying for it now locks in the benefit before the Treasury potentially scraps it.
5. Build an Emergency Cash Buffer
In an era of economic uncertainty, a robust cash safety net is your first line of defence. Experts recommend having an emergency fund that covers three to six months' worth of essential expenses. With the budget's potential to influence interest rates and economic stability, ensuring you have immediate access to liquid cash is a non-negotiable step for financial resilience.
The message from the financial world is clear: do not adopt a wait-and-see approach. Proactive planning and taking these key steps before November 6th could make a substantial difference to your financial wellbeing throughout 2025 and beyond.
