5 no regret moves you can take before the 2025 Autumn Budget

We’re heading into the second month of Budget speculation, and it’s easy to let it get to you.

So far, it’s all just a whirlwind of rumours, but when you read so much about so many tax threats for so long, it can be tempting to feel you should do something – just in case.

The risk is that you feel under pressure to take steps you wouldn’t otherwise consider – because you’re stressed about a potential tax hike or rule change.

Alternatively, you might be torn in so many directions that you end up not doing the things that make the most sense for your finances.

Fortunately, you don’t need to be tempted into making mistakes, because there are some sensible steps you can take to help manage your tax bill that you’ll be pleased with – regardless of whether they make it to the Budget announcement or not.

This article isn’t personal advice. If you’re not sure if an action is right for you, ask for financial advice. ISA, pension, and tax rules can change, and benefits depend on your circumstances. Tax rates and bands are different for Scottish taxpayers.

Before the Budget arrives

Some things need to be thought about more before taking action, like taking tax free cash from your pension.

But there are things you can do, that if you’re in a position to do so, shouldn’t leave you with any regrets.

With rumours suggesting possible tweaks to capital gains tax (CGT), you can take steps to manage any future tax bills, by moving any existing assets outside an ISA or pension into a tax wrapper.

You could use Share Exchange to sell your shares in an HL Fund and Share account and move the cash into a Self-Invested Personal Pension (SIPP), or Stocks and Shares ISA, and buy back the same shares again – all in one instruction.

Remember, your £3,000 CGT allowance might mean you have some tax to pay but once that money is in your SIPP or ISA, it can grow free from UK income and capital gains tax.

You could get an extra boost by moving money into a pension thanks to tax relief.

How much you can pay in and the tax relief you get depends on your circumstances. Remember though, you can't usually access money in a pension until 55 (57 from 2028).

Before using Share Exchange take any charges for the deal and the new account charges into consideration. And remember you have to stick to your overall ISA and pension allowances.

If you’re starting out on your investment journey, it makes sense for a Stocks and Shares ISA to be your first port of call. It can protect you from both capital gains tax and income tax.

With an allowance of £20,000 to use this tax year, if you have the money available, and were planning to invest this tax year anyway, it’s worth doing it before any potential new changes.

Remember, all investments and any income from them can rise and fall in value so you could get back less than invested.

If you need the money within five years, a Cash ISA might be better suited. It will still protect you from any UK income tax on any savings interest.

The government has the option to extend the current freeze in income tax thresholds – which are already set to last until 2028.

Pension contributions can protect income from tax attacks, because you get tax relief at your highest marginal rate. It means higher earners should take as much advantage as makes sense for their finances. A £60,000 contribution could cost just £36,000 for a higher-rate taxpayer and £33,000 for someone paying additional rate.

If you’re planning to add money to your pension this tax year, and you have the money available now, you might want to consider doing it before the Autumn Budget.

Just remember though, you can only access money in a pension at 55 (rising to 57 in 2028). Scottish rates of tax differ and you need to pay enough tax at the higher rate to claim back the full amount of tax relief.

There are also questions over whether the government might move from a system of tax relief on pensions at your highest marginal rate, to a flat rate.

This could be set to match the basic rate – or slightly higher. If you’re a higher or additional-rate taxpayer, you were planning to pay more into your pension in the current tax year, and you’re worried about changes to the pension tax relief regime, it’s a good idea to make the most of the system as it currently stands by making a contribution to your pension in the coming weeks. This means you can benefit from the higher rates of relief on offer.

If it makes sense for you to give gifts to family, you can consider the most tax-efficient ways to do it.

You can give away up to £3,000 within your annual gift allowance, and a couple could combine their exemptions.

If you pass away within this seven-year period, the gift becomes chargeable and would then increase the overall tax bill. Your executors can claim taper relief, which reduces the tax payable on the excess you’ve gifted over your available nil rate band.

A Junior ISA can be given to any child under the age of 18. It counts as being given away now for tax purposes, but will be locked away until the age of 18, when it belongs entirely to the child.

There’s been suggestions the government might set some sort of lifetime cap on gifts under inheritance tax rules, or remove the taper relief on large lump sum gifts.

It’s important not to rush into any decisions, or allow the tax to force you into decisions you wouldn’t otherwise take.

If you’re worried about change and unsure of the best approach – or how much you can afford to give away - this is one of the times in life where getting financial advice can offer real peace of mind.

In any case it’s worth considering the most sensible way to take advantage of this potential window of opportunity before it closes.