Overview and key points
The Chancellor’s Autumn Budget always have a tendency to leave people wondering how it will impact their personal finances, and this year is no different. With headlines swirling and speculation everywhere, many of our clients are asking: What does this mean for me?
To help provide some clarity, our Chief Client Officer, Jonathan Miller, sat down for a Q&A session with Chartered Financial Planner and Ecosystem Partner, Sophie Haslehurst from Integrity 365. Sophie is an experienced Independent Financial Adviser who has advised on 20+ budgets in her career and below shares her answers, including practical insights to help individuals plan.
Q&A with Sophie Haslehurst:
What are the headline changes for individuals?
From an individual point of view, I’ve had lots of clients who’ve been extremely worried following last year’s budget about what might happen. However, the headline this year is that there aren’t actually many headlines. Last year, we saw a huge raft of changes come in, and what Labour have done this year is make some tweaks.
Firstly, tax thresholds and allowances have been frozen until 2031. For a lot of people, this might sound like good news because they’re not being decreased, but effectively, when combined with the impact of inflation, what this means is that more people will pay higher taxes over time.
Why does freezing tax bands matter?
The personal allowance is stuck at £12,570. If it had risen with inflation, by 2031 it would be closer to £18,000. That gap means you’ll pay more tax on the same income over time.
Other key updates include:
- Cash ISA allowance reduces to £12,000 for under-65s in two years.
The Chancellor hasn’t changed it for over-65s, but effectively she’s trying to encourage more people to invest rather than keep money in cash.
- Venture Capital Trusts (VCT) income tax relief is dropping from 30% to 20% next year.
- Inheritance Tax (IHT) will impact more estates by April 2027.
Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs) remain valuable tax planning tools, with EIS options expanding, but VCT income tax relief dropping from 30% to 20% next year, proactive planning will be essential as rising asset values push more estates into the inheritance tax net.
How will these changes affect personal tax planning?
Frozen tax bands create “fiscal drag,” increasing tax liabilities gradually. 3 tips to stay ahead:
1. Review pension contributions and salary sacrifice strategies.
2. Use tax-efficient investments like pensions and ISAs.
3. Prepare for potential IHT exposure as estate values rise.
Upcoming changes will make personal tax planning more focused on tax-efficient income strategies. Pensions and ISAs will play a bigger role in retirement planning, shifting away from their traditional use for inheritance tax purposes. From 2029, salary sacrifice benefits will be capped at £2,000, meaning contributions above this will attract National Insurance for both employees and employers. While the financial impact is small for most, these changes highlight the need for flexible, proactive planning to stay ahead of evolving tax rules.
What steps should individuals take now in response to the Budget?
Sophie’s advice: Don’t panic – plan early. Start now by reviewing your pension and ISA strategy, building flexibility into your retirement plan, and seeking independent financial advice. Avoid reacting to speculation. Instead, create adaptable strategies for income, savings, and long-term goals.
Key takeaways for individuals
1. Frozen tax bands mean higher tax bills over time.
2. ISA and VCT changes encourage investment over cash savings.
3. Inheritance tax planning is more important than ever.
Conclusion
Autumn Budget 2025 may not have introduced sweeping reforms, but its subtle changes will have long-term implications for personal wealth and business strategy. The key takeaway? Plan early, seek expert advice, and stay informed.
If you’d like to speak with or connect with Sophie or a member of the Integrity365 team, please don’t hesitate to get in touch, either directly via their website or through your existing Partners& adviser.
More resources from Integrity365:
Salary Exchange Cap & National Wage Increases: What does the Autumn Budget 2025 mean for employers?
The Autumn Budget 2025: Financial Planning Headlines & Summary Guide