With that in mind, we asked IFAs across our 50+ locations in the UK to suggest the financial gifts they’d recommend—or those they loved receiving when they were growing up.
Inspired by the classic carol The 12 Days of Christmas, their suggestions are practical ideas designed to educate and encourage the future financial habits of your loved ones.
While it may not be the most cheerful gift suggestion, financial protection is undoubtedly one of the most important.
Life insurance, critical illness cover, or income protection can ensure your loved ones are financially supported in case of unforeseen circumstances. For young families or those with dependents, this kind of financial security is invaluable. It’s not the flashiest gift, and it’s unlikely to make an appearance under the tree, but it could be the most impactful. If you don’t currently have protection in place and you have dependents, the greatest gift you can give this Christmas is guaranteeing their future financial security in the face of unforeseen circumstances.
Board games are not just a fun way to spend time; they can also teach valuable financial lessons.
Games like Monopoly and The Game of Life introduce players to investing, managing cash flow, and the strategic risks of property ownership. Similarly, Hotel adds another dimension by showing how to build and manage assets effectively. These games can spark conversations about financial concepts in an engaging and entertaining way.
A Junior ISA is a forward-thinking gift that grows alongside the child.
This tax-free savings account allows parents or guardians to save on behalf of a child, giving them a financial head start when they turn 18. Whether it’s for university, their first car, or a deposit on a home, starting early makes all the difference. It’s a wonderful opportunity to teach young people about savings and compound interest.
Owning a stake in a company is a fantastic introduction to the world of investing.
Shares in a company that resonate with the recipient can make the concept of investing more relatable. If you’re looking for a diversified and expertly managed option, a Managed Portfolio Service (MPS) can offer an ideal way to invest in a balanced portfolio. Whether it’s individual shares or an MPS, the recipient can gain insights into how markets work and build an understanding of long-term wealth creation.
Piggy banks might feel like a throwback, but they’re still a simple and effective way to teach younger children about money management.
Growing up, the NatWest porcelain pigs were an introduction to saving for many people. Each new pig was a reward for hitting a savings milestone, teaching the importance of setting goals and working towards them. These days, vault-style electronic piggy banks can bring that concept into the modern era. Children love having their own codes, hiding birthday money, and even having friendly competitions to see who can save the most.
There are plenty of fun themed piggy banks available, alongside modern electronic versions, which make saving both engaging and practical. While we’re moving towards a cashless society, the act of physically saving and building up money remains a valuable and lasting life skill for children. Alternatively, digital savings jars within banking apps can also offer a modern twist on this traditional concept.
Books can be an excellent gift, offering insights and lessons that last a lifetime. Here are six thoughtfully curated titles that cater to various levels of financial literacy:
Each book offers a unique perspective, from budgeting basics to investment principles, making them ideal for anyone looking to improve their financial literacy. These titles don’t promise quick fixes but provide the knowledge and tools needed to make informed decisions about money.
Premium Bonds offer an exciting way to save.
They provide the opportunity to win monthly, tax-free prizes. Although they don’t pay interest, they’re backed by the government, making them a secure and engaging gift for someone new to saving.
Planners are a simple yet powerful tool for achieving financial goals.
High-quality financial planners encourage the user to track their expenses, set budgets, and achieve milestones. Options like the Clever Fox planner is particularly useful for younger individuals starting their financial journey.
A pre-paid debit card is a fantastic way for teens and young adults to manage their money.
By loading a set amount onto the card, they can learn budgeting skills without the risk of overspending. Many cards now come with companion apps that provide spending insights and promote financial responsibility.
Apps like Emma and Plum can transform the way young adults manage their money.
Emma helps track spending across multiple accounts, identifying areas where costs can be cut, while Plum automates savings and encourages investing with small, regular contributions. Both apps are invaluable for developing good financial habits, from saving for goals to making your money work harder.
Empowering someone with the knowledge to take control of their financial future is a gift that lasts a lifetime.
An online course in financial literacy or investing can equip young adults with the skills they need to budget, save, and invest effectively. Platforms like Coursera or Udemy offer affordable, high-quality options.
Finally, a consultation with a financial adviser is a gift of clarity and confidence.
A session with a financial adviser can be transformative. Whether it’s for a recent graduate setting up a budget or a mid-career professional planning their retirement, tailored advice can provide a strong foundation for a brighter financial future.
Why focus on financial gifts?
Financial gifts are about long-term value. They’re not just items; they’re tools for building security, independence, and confidence in managing money.
Are these gifts suitable for all age groups?
Absolutely. We’ve included options for children, teens, and adults. From piggy banks for the little ones to financial planning consultations for adults, there’s something for everyone.
What if the recipient isn’t excited by these gifts?
While financial gifts may not spark immediate excitement, they’re appreciated over time. Pair them with something fun or meaningful to create a balanced gift.
How do I choose the best financial gift?
Consider the recipient’s age, interests, and financial knowledge. A Junior ISA might suit a teenager, while a pre-paid debit card is great for older kids learning to budget.
By choosing a financial gift this Christmas, you’re not just giving something practical; you’re helping your loved ones take a step towards a brighter financial future. What better way to celebrate the season of giving?
If you’re considering gifting something financial, get in touch with an adviser today.
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THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN FUTURE.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAX AND TRUST ADVICE
Christmas is the season of giving, and for many, it’s an opportunity to make a meaningful impact on the lives of loved ones. Beyond the charm of wrapped presents, monetary gifts can offer long-term benefits, helping younger generations save for education, buy a home, or invest in their future. However, ensuring that your generosity aligns with UK financial rules and tax regulations is essential for maximising the impact of your gifts.
Understanding the rules surrounding gifting is not just a matter of legal compliance—it’s the key to making your financial presents as effective and worry-free as possible. This guide will walk you through the essentials of gifting money in the UK, helping you make informed and confident choices this festive season.
With proper planning, your holiday generosity can bring both immediate joy and lasting financial security to your family. Here’s what you need to know to make your monetary gifts count without unintended tax implications.
You can technically gift as much money as you wish to your children or grandchildren. However, the amount you gift, and the timing of your generosity can have an impact on the Inheritance Tax position of your estate further down the line.
The annual tax-free gifting allowance enables you to give up to £3,000 per year without it being subject to Inheritance Tax (IHT). If you didn’t use last year’s allowance, you can combine it to gift up to £6,000 this tax year.
It is also worth keeping the seven year rule in mind when gifting – especially if you are gifting significant sums or assets. If you live for more than seven years after making a gift, no IHT will be due on the respective gift but care is needed, as in certain circumstances, gifts going back up to 14 years can be caught. Advice on the order of gifting is really important.
HMRC allows for several exemptions that make gifting money tax-efficient:
In the UK, there isn’t a specific “gift tax” in the way some countries define it. However, monetary gifts are considered under the umbrella of IHT. As we previously mentioned, if you pass away within seven years of giving a gift, it may be liable to IHT depending on the total value of your estate and the timing of the gift.
Some gifts are fully exempt from tax:
Potentially Exempt Transfers are gifts that may become exempt from tax, depending on how long you live after giving them. Taper relief reduces the tax rate on gifts made three to seven years before your death. It’s really important to note that Taper relief only applies if the total value of gifts made in the 7 years before you die is over the £325,000 tax-free threshold.
| Years Between Gift and Death | Tax Rate |
| Under 3 | 40% |
| 3-4 | 32% |
| 4-5 | 24% |
| 5-6 | 16% |
| 6-7 | 8% |
| 7+ | 0% |
To minimise the inheritance tax burden on your family:
Can I give £3,000 to each child I have?
No, the £3,000 annual exemption applies to you, not your recipients. You can divide it among children or double it to £6,000 if your spouse also gifts.
What’s the best way for grandparents to gift money?
Contributing to living expenses, Junior ISAs, or setting up a trust are common approaches. Tailor the method to your grandchildren’s needs and your financial goals.
Do I need to declare cash gifts to HMRC?
No declaration is required for gifts within the £3,000 allowance or covered by exemptions. For larger gifts, recipients may face IHT if you pass within seven years.
Will HMRC find out about gifts after someone dies?
Yes, executors must report gifts made within seven years to ensure accurate IHT calculations.
Are all gifts subject to the Seven-Year Rule?
No. Tax-free gifts such as those within the £3,000 exemption or to a spouse/charity are not subject to this rule.
Can my child be a beneficiary of my Life Insurance?
Yes, but children under 18 will need a guardian to manage the payout. Consider writing the policy in trust to prevent it from counting towards your estate.
This Christmas, consider how gifting money can create lasting impacts for your loved ones. By understanding the rules and planning strategically, you can spread joy and ensure your family benefits from your generosity in the most tax-efficient way. If in doubt, consult a financial adviser to make your festive giving as impactful as possible.
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How Inheritance Tax works: thresholds, rules, and allowances: Rules on giving gifts – GOV.UK
THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN FUTURE.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAX AND TRUST ADVICE
In a significant shift announced by Chancellor Rachel Reeves, inherited pensions will become subject to Inheritance Tax (IHT) from April 2027. This marks a departure from previous rules where pensions were excluded from IHT calculations. Currently, pensions are usually passed on tax-free if you die under the age of 75 – or taxed at the beneficiaries’ marginal rate of Income Tax if you die over 75 – but in most cases, pensions don’t attract IHT.
This announcement is expected to impact roughly 8% of estates annually, as those who have heavily saved in pensions to lower their IHT liabilities now face new tax burdens.
Additionally, the IHT tax-free threshold remains frozen at £325,000 (your property, money and possessions) until 2030. If your assets include the family home that you’re giving away to children or grandchildren, you also receive up to a £175,000 residence nil rate band. As property and asset values rise, more estates will likely fall above this threshold, incurring IHT at the standard 40% rate.
Autumn Budget 2024Download our full guide to the Autumn Budget 2024 as we explore the spending plans set by the Chancellor, Rachel Reeves. |
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Chancellor Reeves emphasised that these adjustments aim to make the IHT system fairer, ensuring wealthier estates contribute more to public finances. Also, starting April 2026, reductions in agricultural and business property relief will be introduced. The first £1 million of such assets will remain tax-free, with a 20% IHT levied beyond that, including on Aim shares.
Retirees may need to reassess their long-term financial plans, as defined contribution pension funds could attract up to 40% IHT. Despite these changes, no adjustments to existing gifting rules were announced.
With over 1,250 local advisers and staff, we’re here to help you address any financial needs arising from the Autumn Budget – from investment advice to retirement planning. Simply provide a few details through our quick and easy online tool, and we’ll match you with the ideal adviser.
Alternatively, click below to download our comprehensive guide to the Autumn Budget.
| Match me to an adviser | Download full guide to the Autumn Budget |
THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.
As the UK government outlines its long-term vision for economic recovery and growth in the wake of the autumn budget, significant reforms and strategies are being introduced to stimulate local economies and empower entrepreneurs. We explore the initiatives and funding commitments that will shape the landscape for businesses and foster a thriving entrepreneurial ecosystem.
The government will set out its long-term vision for local growth funding in Phase 2 of the Spending Review. The government is continuing to invest in programmes which are important to growth and provide stability for local leaders and investors.
The government is setting out the next steps for delivering its strategy for regional growth, across investment, devolution and local growth funding reform – which will create good jobs and spread prosperity across the UK.
The government is confirming funding for Investment Zones and Freeports across the UK, announcing the approval of the East Midlands Investment Zone to support advanced manufacturing and green industries, and confirming that five new customs sites will be designated in existing Freeports shortly. The government will also work to ensure the Freeports policy model aligns with the national Industrial Strategy.
Supporting Scottish trade and investment by providing £0.75 million to establish Brand Scotland, a programme run by the Scotland Office to promote Scottish investment opportunities and exports across the globe.
Autumn Budget 2024Download our full guide to the Autumn Budget 2024 as we explore the spending plans set by the Chancellor, Rachel Reeves. |
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The government’s green paper launch on its modern Industrial Strategy sets out eight growth-driving sectors, announcing that government will produce sector plans for each as part of its promise to help these sectors thrive.
The Budget confirms long-term support for growth-driving sectors ahead of the full modern Industrial Strategy’s publication in the Spring, including:
UK Export Finance will support companies supplying critical minerals to UK exporters in growth-driving sectors such as EV battery production, clean energy, aerospace and defence. This new support targets projects that secure critical minerals from overseas and will boost supply chain resilience in key manufacturing sectors.
The government will bring forward a Small Business Strategy Command Paper in 2025.
This will set out the government’s vision for supporting small businesses, from boosting scale-ups to growing the co-operative economy, across key policy areas such as creating thriving high streets, making it easier to access finance, opening up overseas and domestic markets, building business capabilities and providing a strong business environment. The paper will complement the government’s forthcoming Industrial Strategy and Trade Strategy.
Funding for the Made Smarter Adoption programme will double to £16 million in 2025/26, supporting more small manufacturing businesses to adopt advanced digital technologies and enabling the programme to be expanded to all nine English regions.
East West Rail will connect Oxford, Milton Keynes and Cambridge and unlock land for housing and laboratories, supporting the wider Cambridge life sciences cluster The Budget will announce the East West Rail consultation, the next step in the project, which will be launched by the Secretary of State for Transport in November 2024.
The government is announcing that work will begin to develop a social impact investment vehicle, led by the Chief Secretary to the Treasury, working with DCMS, to support the government to deliver its missions. This will bring together socially motivated investors, the voluntary sector and government to tackle complex social problems. This will be designed and developed through engagement with the sector, with further details to be announced at Phase 2 of the Spending Review.
The government will transfer the Investment Reserve Fund in the Mineworkers’ Pension Scheme to the scheme’s Trustees. This will be paid out as an additional pension to members of the scheme.
The government will also take forward a review of the existing surplus sharing arrangements.
The government will deliver the Lifelong Learning Entitlement (LLE), but will postpone its launch by one year. The LLE will launch in September 2026 for learners studying courses starting on or after 1 January 2027.
With over 1,250 local advisers and staff, we’re here to help you address any financial needs arising from the Autumn Budget – from investment advice to retirement planning. Simply provide a few details through our quick and easy online tool, and we’ll match you with the ideal adviser.
Alternatively, click below to download our comprehensive guide to the Autumn Budget.
| Match me to an adviser | Download full guide to the Autumn Budget |
THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.
The Autumn Budget 2024 introduces significant reforms to business and international tax policies, targeting areas such as Capital Gains Tax, business rates, and environmental compliance for corporations. These changes are designed to support economic stability, increase tax transparency, and incentivise sustainable practices among UK businesses. Explore how these updates may impact businesses and international tax obligations.
The lower and higher main rates of Capital Gains Tax will increase to 18% and 24% respectively for disposals made on or after 30 October 2024. The rate for Business Asset Disposal Relief and Investors’ Relief will increase to 14% from 6 April 2025, and will increase again to match the lower main rate at 18% from 6 April 2026. The new rates will be legislated in Finance Bill 2024/25.
The lifetime limit for Investors’ Relief will be reduced to £1 million for all qualifying disposals made on or after 30 October 2024, matching the lifetime limit for Business Asset Disposal Relief. This will be legislated in Finance Bill 2024/25.
The government will reform the way carried interest is taxed, ensuring that this is in line with the economic characteristics of the reward. From April 2026, all carried interest will be taxed within the Income Tax framework, with a 72.5% multiplier applied to qualifying carried interest that is brought within charge. As an interim step, the two Capital Gains Tax rates for carried interest will both increase to 32% from 6 April 2025. The government will also consult on introducing further conditions of access into the regime.
From 1 January 2025, to secure additional funding to help deliver the government’s commitments relating to education and young people, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20%. This will also apply to boarding services provided by private schools.
The government has published a response to its technical consultation on this policy. To protect pupils with special educational needs that can only be met in a private school, local authorities and devolved governments that fund these places will be compensated for the VAT they are charged on those pupils’ fees.
The government greatly values the contribution of our diplomatic staff and serving military personnel. The Continuity of Education Allowance (CEA) provides clearly defined financial support to ensure that the need for frequent mobility, which often involves an overseas posting, does not interfere with the education of their children.
Ahead of the VAT changes on 1 January, the MOD and the FCDO will increase the funding allocated to the CEA to account for the impact of any private school fee increases on the proportion of fees covered by the CEA in line with how the allowance normally operates. The MOD and FCDO will set out further details shortly.
As announced on 29 July 2024, private schools in England will no longer be eligible for charitable rate relief. The Ministry of Housing, Communities and Local Government (MHCLG) will bring forward primary legislation to amend the Local Government Finance Act 1988 to end relief eligibility for private schools. This change is intended to take effect from April 2025, subject to Parliamentary process. Private schools which are ‘wholly or mainly’ concerned with providing full-time education to pupils with an Education, Health and Care Plan will remain eligible for relief.
For 2025/26, eligible Retail, Hospitality and Leisure (RHL) properties in England will receive 40% relief on their business rates liability. RHL properties will be eligible to receive support up to a cash cap of £110,000 per business.
For 2025/26, the small business multiplier in England will be frozen at 49.9p. The government will lay secondary legislation to freeze the small business multiplier. The standard multiplier will be uprated by the September 2024 CPI rate to 55.5p.
The government intends to introduce permanently lower multipliers for Retail, Hospitality and Leisure (RHL) properties from 2026/27, paid for by a higher multiplier for properties with rateable values above £500,000.
A discussion paper has been published setting the direction of travel for transforming the business rates system and inviting industry to a dialogue about future reforms.
The Valuation Office Agency (VOA) is publishing a response to the March 2023 Consultation on Disclosure, which sets out the next steps on increasing the transparency of business rates valuations by disclosing more information.
Autumn Budget 2024Download our full guide to the Autumn Budget 2024 as we explore the spending plans set by the Chancellor, Rachel Reeves. |
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From 31 October 2024, the Higher Rates for Additional Dwellings (HRAD) surcharge on Stamp Duty Land Tax (SDLT) will be increased by 2 percentage points from 3% to 5%. Increasing HRAD ensures that those looking to move home, or purchase their first property, have a comparative advantage over second home buyers, landlords and businesses purchasing residential property.
This is expected to result in 130,000 additional transactions over the next five years by first-time buyers and other people buying a primary residence. This surcharge is also paid by non-UK residents purchasing additional property.
The single rate of SDLT that is charged on the purchase of dwellings costing more than £500,000 by corporate bodies will also be increased by 2 percentage points from 15% to 17%.
From 1 November 2024, the Energy Profits Levy (EPL) rate will rise by 3 percentage points to 38%, the investment allowance will be abolished and the rate of the decarbonisation allowance will be set at 66% so its cash value is maintained. To provide certainty and to support a stable energy transition, the government will make no additional changes to tax relief available within EPL. The levy will end on 31 March 2030. The government will legislate for these measures in Finance Bill 2024/25. To support long-term stability and predictability in the oil and gas fiscal regime, the government will publish a consultation in early 2025 on how the taxation of oil and gas profits will respond to price shocks after the EPL ends. The government will also continue to have regular engagement with the sector to understand the evolving context of oil and gas investment, supported by bi-annual fiscal forums.
The government will legislate in Finance Bill 2024/25 to provide relief for payments oil and gas companies make into decommissioning funds in relation to assets sold for use in Carbon Capture Usage and Storage, maintaining the tax treatment had these assets instead been decommissioned. This legislation will also remove receipts from the sale of these assets from the scope of the EPL.
The government is publishing a consultation on new environmental guidance for assessing end-use emissions related to oil and gas projects. This consultation seeks to provide stability for the oil and gas industry, support investment, protect jobs and ensure a fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations.
The main rates of the Climate Change Levy (CCL) for gas, electricity and solid fuels will be uprated in line with Retail Price Index (RPI) in 2026/27. The main rate for liquefied petroleum gas will continue to be frozen. The reduced rates of CCL will remain at an unchanged fixed percentage of the main rates.
The government will maintain Carbon Price Support rates in Great Britain at a level equivalent to £18 per tonne of CO2 in 2026/27.
The government has published its response to the March 2024 consultation on the introduction of a UK carbon border adjustment mechanism (CBAM). The response confirms that the UK CBAM will be introduced on 1 January 2027, placing a carbon price on goods that are at risk of carbon leakage imported to the UK from the aluminium, cement, fertiliser, hydrogen and iron & steel sectors. Products from the glass and ceramics sectors will not be in scope of the UK CBAM from 2027 as previously proposed. The registration threshold will be set at £50,000, retaining over 99% of imported emissions within the scope of the CBAM, while removing over 80% of otherwise registrable businesses.
Over 70% of those removed from the CBAM altogether by this threshold are micro, small or medium-sized businesses.
For 2026/27, the government will increase rates of Air Passenger Duty (APD). This equates to £1 more for those taking domestic flights in economy class, £2 more for those flying to short-haul destinations in economy class, £12 for long-haul destinations, and relatively more for premium economy and business class passengers. The higher rate, which currently applies to larger private jets, will rise by a further 50% in 2026/27. From 2027/28 onwards, all rates will be uprated by forecast RPI and rounded to the nearest penny. The government is also consulting on extending the scope of the APD higher rate to capture all passengers travelling in private jets already within the APD regime.
The government will freeze fuel duty rates for 2025/26, a tax cut worth £3 billion over 2025/26 which represents a £59 saving for the average car driver. The temporary 5p cut in fuel duty rates will be extended by 12 months and will expire on 22 March 2026.
The planned inflation increase for 2025/26 will also not take place.
The government is setting rates for Company Car Tax (CCT) for 2028/2029 and 2029/30 to provide long-term certainty for taxpayers and industry. CCT rates will continue to strongly incentivise the take-up of electric vehicles, while rates for hybrid vehicles will be increased to align more closely with rates for internal combustion engine (ICE) vehicles, to focus support on electric vehicles.
The government will uprate standard Vehicle Excise Duty (VED) rates for cars, vans and motorcycles, excluding first-year rates for cars, in line with the RPI from 1 April 2025.
The government will change the VED First-Year Rates for new cars registered on or after 1 April 2025 to strengthen incentives to purchase zero emission and electric cars, by widening the differentials between zero emission, hybrid and internal combustion engine (ICE) cars.
These changes will apply from 1 April 2025.
The government recognises the disproportionate impact of the current VED Expensive Car Supplement threshold for those purchasing zero-emission cars and will consider raising the threshold for zero-emission cars only at a future fiscal event to make it easier to buy electric cars.
The government will uprate the Van Benefit Charge and Car and Van Fuel Benefit Charges by CPI from 6 April 2025.
The government will support pubs and the wider on-trade by cutting alcohol duty rates on draught products below 8.5% alcohol by volume (ABV) by 1.7%, so that an average ABV strength pint will pay 1p less in duty. The government will also increase the discount provided to small producers for non-draught products, and maintain the cash discount provided to small producers for draught products, increasing the relative value of Small Producer Relief. Alcohol duty rates on non-draught alcoholic products will increase in line with RPI inflation. These measures will take effect from 1 February 2025.
The current temporary wine easement will also end as planned on 1 February 2025.
The government will consult on ways to ensure that small brewers can retain and expand their access to UK pubs, and maximise drinkers’ choice, including through provisions to enable more ‘guest beers’.
The government will consult with industry to improve the Spirit Drinks Verification Scheme (SDVS) and make an investment of up to £5 million to support the SDVS.
The Alcohol Duty Stamps Scheme will end following a review by HMRC. The government will introduce legislation in Finance Bill 2024/25 to end the Scheme from 1 May 2025.
To protect its real terms value, the Soft Drinks Industry Levy (SDIL) will be increased, over the next five years, to reflect the 27% CPI inflation between 2018 and 2024. Annual rate increases will occur on 1 April, starting on 1 April 2025, and will also reflect future yearly CPI increases.
To ensure the SDIL continues to encourage reformulation to help tackle obesity, the government will review the current SDIL sugar content thresholds and the current exemptions for milk-based and milk substitute drinks. Contributions from all interested stakeholders are welcomed as part of this review.
The government will renew the tobacco duty escalator at RPI+2% on all tobacco products until the end of this Parliament
To reduce the gap with cigarette duty, the rate on hand-rolling tobacco will increase by a further 10% this year. These changes will take effect from 6pm on 30 October 2024 and will be included in Finance Bill 2024/25.
A flat-rate excise duty on all vaping liquid will be introduced from 1 October 2026 at £2.20 per 10ml vaping liquid, accompanied by an equivalent one-off increase of £2.20 per 100 cigarettes / 50g of tobacco in tobacco duty to maintain the financial incentive to switch from tobacco to vaping.
The Gross Gaming Yield bandings for gaming duty will be frozen from 1 April 2025 until 31 March 2026.
From 1 April 2025, UK films with budgets under £15 million and a UK lead writer or director will be able to claim an enhanced 53% rate of Audio-Visual Expenditure Credit, known as the Independent Film Tax Credit. Expenditure incurred from after 1 April 2024 on films that began principal photography on or after 1 April 2024 is eligible. This measure was announced at Spring Budget 2024 and has been legislated.
From 1 April 2025, the rates of Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibitions Tax Relief will be set at 40% for non-touring productions and 45% for touring productions and all orchestra productions. These rates apply UK-wide. This measure was announced at Spring Budget 2024 and has been legislated.
The government will discuss widening the use of advance clearances in Research & Development reliefs with stakeholders, with the intention to consult on lead options in spring 2025. The government has also published a document setting out further information on the scale and characteristics of error and fraud up to 2023/24, the policy and operational changes that have been made to address this, and further data on customer experience.
The government will launch a consultation in spring 2025 to develop a new process that will give investors in major projects increased tax certainty in advance.
The government will extend for a further year the 100% First Year Allowances (FYA) for qualifying expenditure on zero-emission cars and the 100% FYA for qualifying expenditure on plant or machinery for electric vehicle chargepoints, to 31 March 2026 for Corporation Tax purposes and to 5 April 2026 for Income Tax purposes.
With over 1,250 local advisers and staff, we’re here to help you address any financial needs arising from the Autumn Budget – from investment advice to retirement planning. Simply provide a few details through our quick and easy online tool, and we’ll match you with the ideal adviser.
Alternatively, click below to download our comprehensive guide to the Autumn Budget.
| Match me to an adviser | Download full guide to the Autumn Budget |
THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.
The Autumn Budget 2024 introduces an extensive range of reforms designed to enhance tax efficiency and economic resilience. From the increase in employer National Insurance Contributions (NICs) to updated Capital Gains and Inheritance Tax policies, these measures have significant implications for both individuals and businesses.
Here’s a closer look at some of the key changes shaping the UK tax landscape.
Starting from 6 April 2025, the employer NICs rate will increase from 13.8% to 15%, with the Secondary Threshold—the point at which employers begin to pay NICs on employees’ earnings—reduced from £9,100 to £5,000. This change, applicable until 6 April 2028, aims to increase tax revenues, after which the threshold will adjust in line with the Consumer Price Index (CPI).
To alleviate the impact on smaller employers, the Employment Allowance will rise from £5,000 to £10,500, with the government removing the £100,000 eligibility threshold, broadening the allowance to include all eligible employers starting in April 2025. Additionally, NICs relief for hiring veterans has been extended for an additional year, providing employer NICs exemptions up to £50,270 for veterans’ first year of civilian employment.
The remittance basis of taxation for non-UK domiciled individuals will be replaced by a residence-based regime from 6 April 2025, allowing foreign income and gains (FIG) to be excluded from UK taxation for the initial four years of residence. For Inheritance Tax (IHT) purposes, the use of offshore trusts to avoid IHT will be phased out, and the rules for Capital Gains Tax (CGT) will allow current and past remittance basis users to rebase foreign assets to their 2017 values upon disposal, under certain conditions.
Autumn Budget 2024Download our full guide to the Autumn Budget 2024 as we explore the spending plans set by the Chancellor, Rachel Reeves. |
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The government is also reforming inheritance tax rules:
The IHT nil rate bands will remain frozen at £325,000 and £175,000 (for the residence nil rate band) until 2030, allowing estates to pass on up to £500,000 tax-free, or up to £1 million for estates of surviving spouses or civil partners.
Through these comprehensive reforms, the government aims to create a fairer, more efficient tax system that supports economic stability and enhances public funding.
With over 1,250 local advisers and staff, we’re here to help you address any financial needs arising from the Autumn Budget – from investment advice to retirement planning. Simply provide a few details through our quick and easy online tool, and we’ll match you with the ideal adviser.
Alternatively, click below to download our comprehensive guide to the Autumn Budget.
| Match me to an adviser | Download full guide to the Autumn Budget |
THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.
The Autumn Budget 2024 introduces a comprehensive suite of measures aimed at enhancing tax compliance, closing loopholes, and modernising HMRC’s operations. From bolstering HMRC staff and updating IT systems to reforming tax rules on pensions, capital gains, and offshore interests, these initiatives reflect a strategic push towards a fairer, more transparent tax system.
Here’s an overview of the key changes and their implications for taxpayers.
As announced in July, £1.4 billion will be invested over the next five years to recruit an additional 5,000 HMRC compliance staff, aiming to raise £2.7 billion annually by 2029/30. An additional £262 million will fund 1,800 HMRC debt management staff, projected to generate £2 billion per year in revenue by 2029/30.
Significant investment is also planned for modernising HMRC’s debt management case system (£154 million) and acquiring additional credit reference agency data (£12 million) to better target debt collection activities. Furthermore, £16 million will enhance HMRC’s app, allowing Income Tax Self Assessment taxpayers to make voluntary advance payments in installments.
To make Inheritance Tax easier and quicker, £52 million will fund digitisation of the service from 2027/28. Additionally, digital reporting for Individual Savings Account (ISA) managers will become mandatory from 6 April 2027, with draft legislation available for consultation in 2025.
Self-Assessment tax returns will soon be pre-populated with Child Benefit data to ensure accuracy in the High-Income Child Benefit Charge (HIBC). Plans to require payroll software for reporting benefits in kind by 2026 will improve efficiency in tax collection on income tax and Class 1A National Insurance contributions (NICs).
The Making Tax Digital (MTD) initiative will continue to expand, initially targeting individuals with incomes over £20,000 by the end of this Parliament, with additional timelines to be confirmed at future fiscal events.
Autumn Budget 2024Download our full guide to the Autumn Budget 2024 as we explore the spending plans set by the Chancellor, Rachel Reeves. |
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To tackle tax avoidance and fraud within umbrella companies, recruitment agencies will be responsible for accounting for PAYE on payments to workers supplied via these companies starting in April 2026. This reform aims to protect workers from large tax bills caused by non-compliant umbrella companies.
The late payment interest rate on unpaid tax liabilities will increase by 1.5 percentage points from 6 April 2025. Additionally, new legislation will address tax avoidance in contrived car ownership schemes, levelling the playing field for all employees.
Charity tax rules will be tightened to prevent abuse, effective from April 2026, while reforms to capital gains tax on liquidated Limited Liability Partnerships (LLPs) will close a tax avoidance route, effective 30 October 2024.
Efforts to reduce offshore tax non-compliance will be strengthened, with additional resources dedicated to high-value offshore fraud investigations. A consultation on offshore interest reporting aims to simplify rules for easier compliance with UK tax requirements.
The Crypto asset Reporting Framework (CARF) will be extended to UK users, and the government will implement reforms to Employee Ownership and Benefit Trust taxation to prevent abuse, ensuring these structures reward employees fairly.
To increase reporting of high-value tax fraud, HMRC will strengthen its rewards scheme for informants. New consultations on tackling marketed tax avoidance and improving HMRC’s correction powers will support efforts to reduce tax fraud.
The government will engage with stakeholders to develop measures for a more user-friendly tax administration system, which will be detailed in the spring.
New rules will bring European Economic Area (EEA) Overseas Pension Schemes (OPS) and Recognized Overseas Pension Schemes (ROPS) in line with those established elsewhere from 6 April 2025.
With over 1,250 local advisers and staff, we’re here to help you address any financial needs arising from the Autumn Budget – from investment advice to retirement planning. Simply provide a few details through our quick and easy online tool, and we’ll match you with the ideal adviser.
Alternatively, click below to download our comprehensive guide to the Autumn Budget.
| Match me to an adviser | Download full guide to the Autumn Budget |
THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.
The Chancellor, Rachel Reeves, announced the government is to increase the rate of employer National Insurance Contributions (NICs) by 1.2 percentage points to 15% from 6 April 2025, which will raise £25bn in tax. This will mean employers will have to pay 15p in NIC for every £1 paid to an employee. In addition, the NIC per-employee secondary threshold at which employers start to pay NI will be reduced from £9,100 per year to £5,000 per year.
The Chancellor said she was ‘taking the difficult decision to increase the rate to repair the public finances and help raise the revenue required to increase funding for public services.’
Autumn Budget 2024Download our full guide to the Autumn Budget 2024 as we explore the spending plans set by the Chancellor, Rachel Reeves. |
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While she recognised this was an additional cost to businesses, the Chancellor also said, ‘Successful businesses depend on successful schools, and healthy businesses depend on a healthy NHS.’ However, the Chancellor announced that the Employment Allowance would be raised, which she said would mean more small employers pay no NI, and around one million would pay the same or less. The allowance will increase from £5,000 to £10,500.
The government will also expand the Employment Allowance by removing the £100,000 eligibility threshold, to simplify and reform employer NICs so that all eligible employers will benefit.
With over 1,250 local advisers and staff, we’re here to help you address any financial needs arising from the Autumn Budget – from investment advice to retirement planning. Simply provide a few details through our quick and easy online tool, and we’ll match you with the ideal adviser.
Alternatively, click below to download our comprehensive guide to the Autumn Budget.
| Match me to an adviser | Download full guide to the Autumn Budget |
THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.
As part of a broader tax-raising initiative, the Chancellor, Rachel Reeves, confirmed that the lower Capital Gains Tax (CGT) rate will rise from 10% to 18%, while the higher rate will increase from 20% to 24%. This change means you might face higher taxes on profits from selling assets like shares. Previously, those with gains above the threshold had to pay 20% on profits from assets such as shares, or 24% from selling additional property. Rates on residential property will remain at 18% and 24%, respectively.
‘We need to drive growth, promote entrepreneurship and support wealth creation, while raising the revenue required to fund our public services and restore our public finances,’ Reeves said.
‘This means the UK will still have the lowest capital gains tax rate of any European G7 economy.’
CGT is paid on profits of more than £3,000 (2024/25) made when an asset is sold, and rates depend on how much you usually pay in Income Tax, and how large the gain is.
Autumn Budget 2024Download our full guide to the Autumn Budget 2024 as we explore the spending plans set by the Chancellor, Rachel Reeves. |
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The Chancellor also announced that the CGT charged on carried interest would rise to 32% from 28%, saying that the fund management industry provided ‘a vital contribution to our economy but… there needs to be a fairer approach to the way carried interest is taxed.’ She said that in order to encourage entrepreneurs to invest in their businesses, the lifetime limit for Business Asset Disposal Relief would be kept at £1 million and would remain at 10% this year, rising to 14% in April 2025 and 18% in 2026/27.
‘The OBR say these measures will raise 2.5 billion pounds by the end of the forecast,’ the Chancellor said. CGT raised 15 billion pounds in the last financial year, and is currently worth around 4% of receipts from all taxes on income. CGT is not normally payable when a person sells their primary residence, but is payable if on the sale of second properties.
With over 1,250 local advisers and staff, we’re here to help you address any financial needs arising from the Autumn Budget – from investment advice to retirement planning. Simply provide a few details through our quick and easy online tool, and we’ll match you with the ideal adviser.
Alternatively, click below to download our comprehensive guide to the Autumn Budget.
| Match me to an adviser | Download full guide to the Autumn Budget |
THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.
If you are in your 40s or 50s, it’s likely that you will have been contributing towards your pensions for decades now. You may have accumulated multiple workplace pensions at this point. And you could have investment strategies in place with one eye on your retirement.
But when was the last time you thoroughly examined your pension and retirement plan?
A comprehensive, documented retirement plan will help you feel prepared for the future. Giving you peace of mind that you will have sufficient income when you take a step back from working.
Throughout this article, we explore the key considerations for reviewing your retirement plan. And if you don’t have a plan in place, this will be a helpful starting point.
Retirement looks different from person to person. Maybe you’re looking to spend more time with your family; travelling to your bucket list destinations might be high on your agenda; or maybe you’re looking to start a new hobby, or even a new business.
Knowing what you actually want to do in your retirement is key. You can then start to determine how much money you will need. The more granular you be, the better. You will need to take everyday expenses, such as mortgage payments, household bills and even your grocery shopping into account.
Set savings aside as a contingency plan too so that if there are any emergencies, medical needs or care plans which you need later down the line, you won’t have to worry.
Factoring inflation into your plans is always a wise move. As the last few years have shown, inflation rates can fluctuate dramatically. By taking inflation into consideration, you will build a really solid foundation for your retirement.
Plans can easily change, especially when it comes to retirement. External factors may force you to retire earlier or later than you originally planned. Therefore, it is worth revisiting whether you would still like to retire at the same age as you had originally planned to.
Once you know your answer, you’ll need to decide on how much money you will need to sustain the lifestyle you desire throughout retirement.
Divide this number into an annual salary and then a monthly income. This will help you to see if your savings will see you through.
It’s more than likely that you have multiple pensions as part of your retirement plan. A combination of your personal pensions, workplace pension, state pension, ISAs and investments could all constitute part of your plan.
These 4 quick tips should be kept front of mind, when reviewing your overall retirement pot:
Regularly reviewing your retirement plan is always a good idea. It will ensure that you are on track to achieving the retirement income you need in order to live the lifestyle you want.
An annual review is usually sufficient. It is regular enough to ensure that you can accommodate any changes in priorities or circumstances. But it also gives you enough of a break to ensure you don’t become anxious about the health of your pension and short-term performance.
If you are eligible for State Pension, the amount you receive will depend on your National Insurance contribution record.
It’s unlikely that the State Pension alone will be able to support your retirement. You can check your State Pension forecast to see how much you could receive, when you can claim it and if you can improve it here.
In the UK you can access some, or all of your pension benefits from age 55. This will increase to 57 from April 2028 onwards.
Your own unique circumstances will influence which income option is right for you. It’s worth noting that some contracts will restrict your options, and there are tax implications to consider too.
Your retirement plan will be entirely unique to you, your current position and future aspirations. We’re here to help you create a watertight retirement plan, helping you navigate your financial future with confidence.
Whether you’re starting your retirement planning from scratch, or you’re checking in with plans you have already made, our team of advisers are here to support you.
THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
