In the Chancellor’s 2025 Budget announcement on 26 November Rachel Reeves made clear steps and changes towards reforms to ISA allowances and pensions.
ISAs
Cash ISA allowances these are to be capped at £12k pa, with £8k now mandated to be invested. This change doesn’t impact S&S ISA investors nor over 65 ISA investors.
We understand from the Budget statement detail that the lifetime ISA is being scrapped and will be reformed in early 2026 but we have no further detail on this yet.  Please contact us if you would like to discuss how this might impact upon your savings and investment plans.
Pensions
In a further announcement the Chancellor added that NI will be payalbe on salary sacrifice pension contributions over £2k. Again we will know more about this in the coming days and we will add more detail at our webinar on Friday 28 November.
Savings
Savings, dividend and property income will all see an increased rate of tax. We expect this will have a impact on many of our clients.  If this is an area of concern for you, please speak to us.
If you would like to arrange a free financial healthcheck with an independent IFA at no initial cost or olbigation, please contact us. We are specialists in ISAs and pensions as well as many other areas of personal financial planning and wealth management. Please call us on 020 7870 9050 or contact us here.Â
