Budget 2025

It’s time to call the budget in a few weeks and the impact we expect on the UK economy.

No budget decision doesn’t change the environment we operate in and how we feel.

I do actually feel sympathy for Rachel Reeves as she comes into a period of not being able to blame the previous government, Liz Truss or Brexit.

Unemployment just hit 5% in the UK and I think the mood is pretty bleak.

So what are the predictions:

1. Income tax rise
   • 2p on income tax and reduction of 2p on NI for under £50k approx of income. This should protect the working but bring landlords and pensioners a tax increase which is pretty large. I think being a buy to let landlord isn’t that great after this (if it was recently anyway)
2. ISA reform
   • Reductions of the annual allowance and tax free benefits for investing in UK listed entities – not that great for saving or for the UK stock market
3. Settlement Charge (exit tax)
   • 20% deferred CGT on private assets if you leave the UK. It’s pretty much worldwide so brings it into line with most other G7 economies. Interesting what that means for the SRT – more to come on this post budget but might actually encourage people to comeback to the UK (not sure)
4. Gambling Tax
   • Not that popular but again will correct some anomalies
5. Mansion Tax
   • New bands or a review of property value and council tax

There will be about another 20 amendments that will come out but these are the major ones

Let’s see what happens!