The Budget: Adviser Summary

The 26th November Budget delivered several key announcements that will affect Financial Advisers. Most notably:

The inheritance tax nil -rate band and residence nil-rate band being frozen for a further year until 2030/31
Personal tax thresholds, and equivalent national insurance (NIC) thresholds, being frozen for a further three years until 2030/31
An additional 2% tax charge added to the basic and higher rates of tax on dividends from 6 April 2026
An additional 2% added to all rates of tax on savings income from 6 April 2027
Separate tax rates for property income profits: 22% for basic rate, 42% for higher rate, 47% for additional rate taxpayers from 6 April 2027
A £2,000 cap on the amount that can be sacrificed into a pension without paying NICs from 6 April 2029
A new £12,000 annual limit on cash ISAs ( for under-65s ) from 6 April 2027
Venture Capital Trust income tax relief decreasing to 20% from 6 April 2026
A High Value Council Tax Surcharge applying to properties valued at £2 million or more from 2028.

The tax changes announced once again reinforce the importance and value of informed and up to date financial advice.

Download the PDF to read detailed analysis of these measures by Scottish Widows.