Beyond the Budget: Navigating the year ahead

As we step into the New Year, many are still digesting the Autumn Budget and wondering what it means for everyday life, long-term plans and financial security.

While support was clearly directed towards lower-income households, much of Middle England and many employers may feel overlooked.

Here’s what the changes could mean for you:

Plan smart if you’re building a business

For business owners and entrepreneurs, the reduction in Venture Capital Trust (VCT) tax relief by a third may dampen investment appetite. Early-stage and innovative firms could find funding harder to access, so tax-efficient business planning becomes even more important this year.

Reassess your approach if you’re a saver

Those who prefer safer assets such as Cash ISAs may find their ability to save more limited. With the Budget tightening allowances, the traditional slow-and-steady approach may need a rethink. Even modest adjustments can make a meaningful difference over time.

Take stock if you’re approaching retirement

Changes to salary sacrifice reduce the tax advantages for employees who are finally able to make larger pension contributions in mid-life. This makes personalised pension planning far more important. It’s also a good moment to check the basics, such as whether you’ve nominated a beneficiary on your employer’s death-in-service scheme. Many people still haven’t.

Look ahead if you’re managing significant wealth

From April 2027, pension funds are expected to be included within estate values for Inheritance Tax. For those with substantial assets, this will reshape how pensions and investments should be used for income, gifting and long-term estate planning.

Use the moment to reset

Post-Christmas credit card bills often prompt a period of reflection. But financial wellbeing is as much about mindset as money. How we respond to challenges - rather than the challenges themselves - determines the next steps we take. A small shift in attitude can spark meaningful change.

Speak with our local experts by calling us on 01480869466 for a free initial, no obligation chat. For more information and useful content, visitwww.beaconwm.co.uk.

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