The Chancellor’s Autumn Budget is only weeks away, and there is growing speculation that key tax reliefs and allowances could soon be reduced or restricted. Reports suggest that higher-rate pension relief, capital gains tax rates and dividend allowances may all come under review.
For business owners and higher-rate taxpayers, this could be a good time to review your position and take action before any announcements are made. Acting early could help preserve existing tax advantages and avoid being caught out by last-minute changes.
Pension top-ups may be worth reviewing
If you are a higher-rate taxpayer, topping up your pension before the Budget could be a sensible precaution. There is increasing talk that higher-rate tax relief may be replaced with a single flat rate of around 30 per cent. Making additional contributions now could therefore secure valuable relief while it remains available.
We can help you check how much unused pension allowance you have from the previous three years and confirm the maximum contribution that can be made without breaching the annual limit. Once the figure is agreed, you will need to contact your financial adviser to arrange the transfer of funds.
Consider dividend timing
If the Budget brings higher dividend tax rates or a further cut in the dividend allowance, taking available profits before the announcement could make sense. The timing of dividend payments is something that can be reviewed easily in advance, allowing you to decide whether an early payment would be beneficial.
Review planned disposals
There are also strong rumours that capital gains tax could be aligned with income tax rates from April 2026. If that happens, gains could be taxed at 40 or 45 per cent instead of 20 per cent. If you are considering selling an investment property, shares, or other chargeable assets, it may be worth reviewing the timing of any disposal now.
Make full use of current allowances
Now is also a good time to check that you have made full use of your ISA allowance, savings allowance and annual capital gains exemption for the current tax year. These smaller reliefs are often overlooked but can all add up.
Talk to us before the Budget
We recommend reviewing your position before the November Budget to ensure you are using every available planning opportunity.
Please get in touch if you would like us to review your pension contributions, dividend timing or planned disposals. A short discussion now could make a real difference later, and help you beat the Budget rather than being caught by it.