By Jon Doyle — November 2025
When any Budget lands, the headlines tend to swing between excitement and anxiety. But once the noise settles, the real question is simple:
What does this mean for your financial plan?
As always, our role at Juniper is to filter out the short-term noise, look at the long-term picture, and help you understand what—if anything—you need to do next. This year’s Budget includes a series of tax and allowance changes that will matter for many families, business owners, and investors. None of it changes the fundamental principles of good planning, but some adjustments are worth noting.
Here’s a clear overview, followed by deeper detail for those who want it.
The Headlines — In Plain English
1. Your tax-free allowances aren’t rising
The Personal Allowance and higher-rate thresholds remain frozen until 2031. As wages rise with inflation, more people will drift into higher tax bands.
2. Cash ISAs will change from 2027
The Cash ISA allowance for those under 65 will drop from £20,000 to £12,000. Over-65s retain the current limit.
The Stocks and Shares ISA allowance – the more useful one – remains at £20,000
3. Higher tax on income from assets and for Business Owners
Dividend income, property income and savings interest will face higher effective taxation as the government adjusts the balance between earned and unearned income.
4. Pension salary sacrifice becomes less generous
From 2029, only the first £2,000 of salary-sacrifice contributions will qualify for National Insurance relief.
5. A new property surcharge on homes over £2m
From 2028, a “high-value property surcharge” will be added to council tax for homes above £2m.
6. Electric vehicles will face a mileage charge
A per-mile levy will apply to electric and plug-in hybrid vehicles.
7. No changes to Business Property Relief or Agricultural Property Relief
There were rumours before the Budget, but these reliefs remain unchanged. But it is now inheritable between spouses so solves a key flaw in the original legislation.
What This Means for You — The Juniper View
Stay focused on your plan, not the political cycle
Every Budget is a balancing act. This one contains measures aimed at funding social commitments while managing the tax base. Our job is not to take a political stance, but to help you respond wisely.
Small changes add up
Individually, many measures seem modest. Collectively, they contribute to what economists call fiscal drag—more tax being taken without the headline rates changing.
Use the allowances you have
With ISA and pension rules tightening in the years ahead, the current window is valuable. Planning early helps you stay ahead of any further reforms.
Your plan is the anchor
Markets move. Rules change. Governments come and go. A disciplined, well-structured financial plan is designed precisely for moments like this.
Optional Deep-Dive: The Technical Details
1. Income Tax & Fiscal Drag
With thresholds frozen until 2031:
- More people will move into the basic and higher-rate tax bands.
- Those close to £50k or £100k may see additional impacts (e.g. Child Benefit charge or loss of personal allowance).
- Planning around adjusted net income becomes even more important.
Planning note: pension contributions and charitable gifts become more useful as tools to manage taxable income.
2. Cash ISA Allowance Changes
From April 2027:
- Under-65 Cash ISA limit drops to £12k
- 65+ limit stays at £20k
This change pushes more savers toward Stocks & Shares ISAs for long-term growth. Which is a good thing!
Planning note: use full current allowances in 2025/26 and 2026/27 while available.
3. Tax on Dividends, Savings & Property Income
The Budget signals a deliberate shift:
- Income from assets should be taxed more like income from work.
- This raises the effective tax rate on dividends, savings interest, and rental income.
Planning note: for most salary/dividends remains better but it is worth a review of this, its another nail in the coffin of BTL, and greater use of ISAs and pensions.
4. Pension Salary Sacrifice Cap
From 2029:
- Only the first £2,000 of salary sacrifice gains NIC relief.
- Large salary sacrifice strategies become less effective.
Planning note for business owners:
- Consider employer contributions instead.
- Update remuneration policies.
- Review shareholders/directors tax planning strategies.
5. High-Value Property Surcharge
Properties valued at £2m+ attract an annual council tax surcharge from 2028.
Planning note:
Good moment to update long-term cashflow modelling, especially for clients in retirement with high-value homes but modest income.
6. EV Mileage Duty
EV and plug-in hybrid owners will pay a per-mile charge.
Planning note:
Company car schemes, fleet choices and benefit structures may need refreshing.
7. Business and Agricultural Property Relief
- No changes in this Budget.
- Both reliefs remain available under current rules.
Planning note:
Continue with existing estate planning strategies, but remain alert for potential future reforms.
What Happens Next?
We will incorporate these updates into your next planning review. Where changes affect your situation directly, we’ll discuss:
- updated tax projections
- ISA and pension utilisation
- investment wrappers
- property planning
- business owner remuneration strategies
- estate planning implications
As always, the goal remains the same:
to help you make confident decisions with clarity, calm, and long-term perspective.
