Budget commentary 2025

Maybe I missed something.

No changes to IHT; no changes to the 7-year gift rule, no imposition of new taxes on the creation of Trusts; no increase in Capital Gains tax rates, or Corporation tax.

The Chancellor’s flamboyant and confident delivery this year was a welcome contrast to her underwhelming performance in 2024. These things matter too, to markets as well as to observers and others.

To a non-economist like me, it sounds like a case of spending more money without worrying about where it is coming from. It might work, why not?

Measures likely to be of most interest to clients include:

Tax on dividends goes up from 8 ¾% to 10 ¾%, and the higher rate from 33 ¾% to 35 ¾% from 6 April 2026, and income tax for Landlords and Savers, ie principally bank and deposit account interest, will rise by 2% from 6 April 2027.

There are some reforms to the ISA regime from 2027.

The green levies on energy costs will be scrapped from April 2026 leading to a reduction in bills.

For comments or queries, please contact Nicholas Ridge