The Chancellor has announced the 2025 Budget, which introduces a range of tax and policy changes that will affect individuals, families and businesses. Many of the measures focus on property, investment income and long-term financial planning.
Tax and property
- Income tax and National Insurance thresholds will remain frozen until at least 2031, which means more people may gradually move into higher tax bands.
- A new charge will apply to residential properties valued above two million pounds, with higher rates for more expensive homes.
- There will also be increases to tax on dividends, rental income and other investment returns.
For many people, this may be a sensible moment to take stock of how property and investments are held, and whether their current arrangements still meet their long-term goals.
Pensions and savings
- ISA allowances will reduce, and new limits will apply to salary-sacrifice pension contributions from 2029.
These changes may affect how people save for retirement and how they pass on wealth to future generations. A review of pension planning or estate arrangements may help ensure that existing plans continue to work as intended.
Business considerations
- New investment allowances and lower business rates for some sectors aim to support growth, while changes to capital gains tax relief may have an impact on future business sales or succession plans.
- Owners and shareholders may find it helpful to revisit their business structure and long-term plans in light of the updated rules.
Families and households
- The removal of the two-child benefit cap and changes to energy bill levies will provide some support for many households.
Families whose circumstances are shifting, or who are planning for the future, may wish to look again at their wills, family arrangements or financial plans to ensure they remain up to date.
Compliance and regulatory points
- A mileage-based road duty will apply to electric and hybrid vehicles from 2028 to 2029.
- The soft drinks levy will expand to cover sugary milk-based and milk-substitute drinks.
These updates may affect individuals with company vehicles and businesses in the food and drink sector, so it may be helpful to check that existing policies, contracts or operational plans remain appropriate.
Supporting our clients through the changes
The Budget brings together several measures that will have different effects depending on personal and business circumstances.
If you would like to talk through how any of the changes may affect you or your organisation, we are here to help you review your position and plan with confidence.
For further information or advice please call 0203 814 2020 or email enquiries@blasermills.co.uk.