While we’re all still guessing what may be announced in the upcoming Autumn Budget, there’s still plenty of issues from previous Statements which people need to act on.
Regardless of what is announced by the Chancellor of the Exchequer on Wednesday, October 28, there are already many significant measures affecting businesses and individuals already in place which still require attention.
The previous Budgets have thrown up a lot of topics which need addressing and it is a good time for people to take stock what impact these will have on an ongoing basis – and that’s without what the upcoming Budget might have in store for us all.
These are some areas of particular relevance:
Inheritance Tax
Inheritance Tax (IHT) remains one of the most significant areas requiring action, particularly for farming families and business owners and planning for the future has never been so important.
Over the last two years, the Government has announced a series of changes affecting estates, pensions and the continued freezing of tax thresholds.
Most notably, unused pension funds are set to form part of an individual’s estate for IHT purposes from April 2027, meaning pensions can no longer automatically be regarded as an efficient way of passing on wealth free from IHT.
For many families, especially those with land, property or business interests, this means reviewing wills, pension nominations and wider succession plans now rather than later. Estate planning can take years to implement effectively, particularly when gifts, trusts or business restructuring are involved.
The key message is simple: don’t wait for another Budget announcement before starting the conversation. The changes already announced are significant enough to warrant action today.
Capital Gains Tax
Capital Gains Tax (CGT) has been another consistent area of Budget reform, with changes to reliefs and exemptions prompting business owners and investors to reassess their plans.
Whether you intend to sell a business, transfer assets to family members or dispose of investment property, understanding how future tax rates and reliefs may affect the outcome is essential.
Waiting until a sale is imminent often leaves little room for effective planning. The most successful transactions are usually those where the tax implications have been considered years rather than months in advance.
Business owners should regularly review their long-term objectives and seek advice before major decisions are made, not afterwards.
Wage increases & National Insurance contributions
For employers, National Minimum Wage and National Living Wage increases have already had a direct impact on payroll costs. On top of this, businesses continue to face higher employment costs through changes to Employer National Insurance responsibilities.
Employers should use this period to review pricing structures, profit margins and workforce planning. Too often, businesses absorb rising employment costs without implementing corresponding changes elsewhere in the business.
Those organisations that regularly review productivity, technology investment and workforce efficiency are likely to be better placed to manage future increases.
In addition, now would be an ideal time to review remuneration strategies, salary sacrifice arrangements, pension contributions and workforce structure.
Businesses should also ensure cashflow forecasts reflect the ongoing cost of employing staff rather than focusing solely on turnover growth.
Focus on what you already know
Every Budget brings uncertainty, but it remains speculation until the official announcement.
The truth is that businesses and individuals already have plenty to contend with from the previous Budgets. Pension changes, IHT planning, employment costs and Capital Gains Tax reforms all require careful consideration and, in many cases, proactive action.
Of course, we all need to listen to what the Chancellor announces next and how that will impact us. But don’t let anticipation of future change distract from implementing the measures that are already known.
For many people, the biggest financial risk is failing to prepare for the changes that have already happened.
