A personal note from Faye & Susie

Dear Clients,

The Autumn Budget 2025 brought a wide range of changes affecting savers, investors, families and retirees. We know Budget announcements can sometimes feel worrying or uncertain, so we wanted to share a clear and friendly summary of what matters most – and, more importantly, how we’re here to guide you through it.

If any part of it raises questions or concerns, please remember that you do not need to make decisions alone. We are here to help and support you.

A Quick Overview – What You Need to Know

This Budget was unusual. Chancellors typically avoid big changes in their second year, yet economic pressures led to several significant tax adjustments.

A few headlines that affect most households:

1. Income Tax & National Insurance Threshold Freeze (Extended to 2031)

The Government has extended the freeze on personal allowance and tax thresholds for another three years, meaning no increases until April 2031
What this means for you:

• As incomes rise but thresholds stay the same, more people gradually move into higher tax bands (“fiscal drag”).
• This can affect families, retirees and investors whose income edges closer to key tax thresholds.

2. Higher Tax on Dividends, Savings & Property Income

Dividend tax rates will rise by 2% from 2026/27 and tax on savings and rental income will increase by 2% from 2027/28 
What this means:

• Investors with dividend-producing portfolios may see lower net returns.
• The value of tax-efficient wrappers such as ISAs and pensions becomes even more important.

3. ISA Changes

The ISA allowance remains at £20,000, but from 2027/28, those under 65 will be limited to £12,000 in Cash ISA contributions
What this means:

• Investment ISAs may become a core part of long-term planning.
• There will be a Government consultation on replacing the Lifetime ISA in 2026.

4. Inheritance Tax: More Freezes & New Charges

The nil-rate band (£325,000) and residence nil-rate band (£175,000) remain frozen until 2031, pulling more families into the IHT net as asset values rise 
From 2027, most unused pension death benefits will also fall into IHT scope for the first time 
What this means:

• Estate planning becomes even more essential—especially for those with pensions they intend to pass on.

5. Business & Self-Employed Updates

The Budget announced changes to capital allowances, NICs thresholds and dividend taxation, which could affect how owners pay themselves and structure their companies. For example, dividend tax increases may alter the balance between salary and dividends for company directors.

6. Pension Planning Considerations

Recent reforms—annual allowance changes, removal of the Lifetime Allowance, rising minimum pension age and new IHT rules—remain a crucial part of financial and retirement planning. A reminder that from 2029/30, salary sacrifice into pensions above £2,000 per year will incur NICs .

What Does This Mean for You Personally?

We know that every client’s situation is unique. The Budget’s impact varies depending on whether you are:

• Accumulating wealth (savings, ISAs, pensions)
• Investing for income
• Planning for retirement
• Managing a business
• Supporting children or grandchildren
• Thinking about inheritance and estate planning

That’s why our advice always comes back to personal circumstances and long-term goals, not headline announcements.

For many, the key actions will be:

• Making the most of your ISA and pension allowances
• Reviewing your dividend-producing investments
• Revisiting your estate plans in light of IHT freezes
• Checking your income levels relative to frozen tax thresholds
• Assessing your opportunities for tax efficiency before new rules begin in 2026/27 and beyond

And we are here to help you with each of these.

Our Message to You

Budgets often bring uncertainty, however with the right planning they bring opportunities.

Please don’t worry alone or feel pressured to act quickly.

Instead, reach out to us. Whether you want to discuss the changes, check your current plan, or simply understand what this all means for your financial future, our door is always open.

Every conversation—big or small—helps ensure your finances are positioned securely and confidently.

Warm regards,

Faye & Susie
Raymond James, Hitchin

Important notice: Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change.
The FCA does not regulate tax advice. This client letter is provided strictly for general consideration only and is based on our understanding as at November 2025 of law, HM Revenue & Customs practice and the contents of the Autumn Budget November 2025.
No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.

Disclaimers: The information contained in this client letter are for general consideration only and is subject to change dependent on specific legal implementation. Tax treatment depends on individual circumstances and may also change in the future.
You should not take, or refrain from taking, action based on its content and no part of this document should be relied upon or construed as any form of advice or personal recommendation. Accordingly, Raymond James has no responsibility whatsoever for all and any losses that may result from such action or inaction and it is essential that professional advice is taken. If you have any questions, please speak to your wealth manager in the first instance.

With investing your capital is at risk.