How the 2025 Budget Affects Private Clients What You Need To Know

Posted 27 Nov, 2025

The Chancellor’s 2025 Budget introduces a wide range of measures that will influence how individuals, families and business owners plan their finances in the coming years. The overall direction is unmistakable. Rather than raising headline tax rates, the government is widening the tax net. For private clients this creates a climate where planning ahead becomes essential rather than optional.

Tax and Savings

Income tax and national insurance thresholds will remain frozen until 2031. This may seem like a quiet reform, but the impact is significant. As wages and investment returns rise, more clients will move into higher tax bands even though their real spending power has not increased. This is one of the clearest examples of fiscal drag affecting ordinary earners.

Savings and investment planning will also shift. From April 2027, the Cash ISA allowance will fall to twelve thousand pounds for individuals under sixty five. From April 2026, the tax rates on dividend income, savings income and property income will rise by two percent. Pension strategy is affected too, with the introduction of a limit on the tax free value of salary sacrifice arrangements from April 2029.

Property and Wealth

High value property owners will feel the introduction of the new council tax surcharge. Homes valued above two million pounds will attract an annual charge of two thousand five hundred pounds, rising to seven thousand five hundred pounds for homes above five million pounds.

Agricultural Property Relief and Business Property Relief remain capped at one million pounds each until 2031, but the key change is that unused relief can now be transferred between spouses or civil partners. This creates the opportunity for couples to secure up to two million pounds of relief on the second death, strengthening long term estate and business succession planning.

Family Support and Welfare

Families will see meaningful changes to support structures. The two child benefit cap will be abolished from April 2026. The state pension will rise by four point eight percent under the triple lock. Clients who employ domestic staff or carers privately will need to prepare for the National Minimum Wage rising to twelve pounds seventy one from April 2026.

What This Means For Private Clients

Across all areas, the message is consistent. With allowances frozen and several tax rates increasing, clients who do not review their circumstances may find their disposable income and long term wealth quietly reduced. Proactive planning is the most effective response. By reviewing your position ahead of these changes, you can protect your financial stability and adapt your strategy with confidence.

Endeavour Law will be publishing detailed commentary on each of the key measures in the Budget so clients can explore the topics most relevant to them.

If you would like personalised advice on how the 2025 Budget may affect your wealth, family or future planning, contact our Private Client team today.