Autumn Budget 2025: What Financial Advisers Need to Know

Chancellor Rachel Reeves delivered her second Autumn Budget today, introducing a series of measures that will reshape financial planning conversations over the coming years.  

For financial advisers, the key takeaway isn't just what's changing – it's the timeline. With most measures taking effect between 2027 and 2031, there's a valuable window to help clients understand the impact and adjust their strategies accordingly.

From ISA reforms designed to nudge savers toward investment to salary sacrifice caps that will affect higher earners' pension planning, these changes demand proactive conversations and flexible financial modelling. 

Below are some key points to discuss with your clients: 

ISA Changes 

One of the key parts of the Budget was the cash ISA annual allowance cut from £20,000 to £12,000 from April 2027, with £8,000 reserved exclusively for stocks and shares ISAs.

However, those aged 65 and over will retain the full £20,000 cash ISA allowance, recognising their greater need for accessible, lower-risk savings as they enter retirement. 

Salary Sacrifice Pension Cap 

From April 2029, salary sacrifice pension contributions will be capped at £2,000 per year for National Insurance relief purposes. Contributions above this threshold will be subject to standard NI rates (8% up to £50,270, then 2% above). There’s a chance this could reduce pension savings for higher earners. 

Income Tax Threshold Freeze 

Personal tax thresholds will remain frozen until 2030-31 (an additional three-year extension from the previous 2028 deadline). Not rising with inflation means more of your clients’ earnings will get pulled into the higher tax band as wages rise.  

High Value Property Tax 

A new 'High Value Council Tax Surcharge' will be introduced from 2028 on properties worth over £2 million in England. The surcharge will apply to fewer than 1% of properties and is expected to raise over £400 million by 2031, with amounts ranging from approximately £2,500 to £7,500 annually depending on property value bands. 

State Pension  

The triple lock will be honoured with the state pension rising by 4.8% from April 2026 meaning clients retain this benefit in retirement. 

Pensions and Inheritance Tax 

While there was no new announcement about this in the Autumn 2025 Budget, it’s worth keeping this at the forefront of your client conversations. From April 2027, unspent pension pots will fall within the scope of inheritance tax (announced in the 2024 Budget). This remains a critical planning point and a seismic shift in standard drawdown strategies.