Coming in hot with some first thoughts on the Budget!

As somewhat expected, we’re dealing with targeted measures rather than headline rate rises. The biggest shock was the Chancellor’s surprise knighthood from the Deputy Speaker.

We’re diving straight in to make it clear what you need to think about right now, what comes next, and what belongs in your long-term planning.

Here’s our headline thinking.

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What do advisers need to think about now?

• BPR/APR curbs. Which clients have estate plans built on full relief? Identify them, prioritise them for review, and make sure the reasoning behind any changes is clearly documented on file.

• Business Asset Disposal Relief threshold halved to £500,000. Business owners planning an exit should review their timing and expected gains, and any plans built on the £1m limit need revisiting. Perhaps reconsider pension or investment funding ahead of a disposal.

• Cash ISA cut scrapped. The £20,000 allowance stays as it is, for all ages, so clients who rushed to fill their cash ISAs ahead of April 2027 can take a breath. If you’ve been preparing to move cautious savers into investments because of the cap, revisit those conversations and the reasoning on file.

• Savings and property income tax up by two additional percentage points each. Today’s Budget confirmed the planned rise, adding a further 2% hike on top of the 2% introduced by Rachel Reeves. This will hit both savings and rental income from April 2027. Review clients with large cash balances outside wrappers and those with buy-to-let income. It’s a natural opening for a wider tax planning conversation and whether income producing investments are still more suitable when considering the tax liabilities.

• LISA withdrawal penalty cut to 20%.
  From 29 October 2026, clients buying their first home above the £450,000 price cap can withdraw their LISA with a 20% charge instead of 25%. They lose the government bonus but get back everything they put in. Think about flagging to any LISA holders (or clients’ children) who’d ruled out a purchase above the cap.

What do advisers need to think about next? (April 2027 onwards)

• Unused pensions in the estate for IHT. Drawdown and decumulation strategies built around passing pensions on will need revisiting. Expect a wave of reviews, and think about whether your team has the paraplanning and admin capacity to handle them before April.

• Temporary tax protection for pensioners. From April 2027-2030 pensioners whose total income is up to the value of the new State Pension will have their income tax liability removed. Important to be aware of for those who regularly top up their income to the personal allowance, or have significant savings income.

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What do advisers need to think about long term? (2028 onwards)

• New Starter ISA. Few details yet, but one to watch as a way in with younger clients and first-time investors.

• High value council tax surcharge. Clients with £2m+ homes may want to talk about cash flow, downsizing or how property fits into their estate plans. Flag them now so you’re ready for 2028.

• Salary sacrifice NI cap. Review your own staff benefits as an employer, and identify clients (especially business owners) whose pension funding relies on salary sacrifice.

• Frozen income tax thresholds. Fiscal drag will push more clients into higher bands each year. Building this into annual reviews and cash flow modelling shows clients you’re on top of it.

• First Time Buyer ISA replacing the Lifetime ISA. Coming in April 2029 for new savers, with the same £4,000 limit and 25% bonus but no withdrawal charge. Existing LISA holders will have questions, and it’s a way in with younger clients and clients’ children, which supports your intergenerational planning.

• Self-assessment payments spread throughout the year. From 2029 self assessment tax payers will be able to pay their bills in smaller amounts spread through the year, rather than in larger payments later on. Potentially changing cashflow issues and requirements.

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Got questions? Bring them on Friday 30^th October!

Join our Budget webinar with M&G’s Les Cameron and our very own Grant Callaghan, on Friday 30th October at 10am, where we’ll unpack what it all means for your firm and your clients.

If you’re into CPD (and who isn’t?) don’t forget to subscribe to our CPD mailers and get first dibs on front row seats to our free learning events online and in-person.

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