As is always the case, the Chancellor delivered a Budget heavy on noise and light on usable detail. For now, we have only headlines around Income Tax, National Insurance, ISAs, property, pensions, Capital Gains Tax and Inheritance Tax.
However, we can be fairly sure that, by the time the government seeks re-election, they will be extracting more tax from the economy than at any time in our history.
If they do not deliver will it be fair to ask, “How is so much being taken from so many for so little?” (with apologies to Winston Churchill)
What We Know (So Far)
· Income Tax & National Insurance: Threshold freezes continue to pull more people into higher tax bands - a stealth tax rise for many.
· Capital Gains Tax: No major structural changes announced, but allowances remain tight.
· ISAs: The annual cash-ISA limit will be reduced from £20,000 to £12,000 (for savers under 65), starting April 2027. LISAs are expected to be scrapped.
· Pensions: No headline changes to allowances or tax-free cash. Future limits on salary-sacrifice NI savings were flagged, but implementation is years away.
· Inheritance Tax: No meaningful reform despite speculation. The framework is unchanged.
· Property: A proposed tax on very high-value homes from 2028 grabbed headlines, but few details exist.
What Actually Matters
Right now, we have lots of politics and very little policy.
The real implications for planning will only become clear once the detailed legislation is published over the coming weeks and months. That’s where the genuine changes always hide.
TCFP View
Budgets create noise. Good financial planning creates clarity.
As ever, we’ll analyse the detail as it emerges and quietly incorporate anything that genuinely affects you into your long-term plan.
For now: stay calm, stay focused, and ignore the headlines.