Newsletter: December 2025

Posted Clock icon3 Mins

From all of us at Henderson Loggie Financial Planning, we wish you a very Merry Christmas and a bright start to the New Year.

At Henderson Loggie, our purpose is simple: to help our clients and people achieve their potential, to create wealth for the local economy now and to leave a legacy for the future in the communities where we are based.

Our team is proud to continue to support you in your journey and are committed to delivering a great level of service to you.

We’ve taken the opportunity to attach a year-end summary of the Autumn 2025 budget, and what this means for our clients and included some planning tips too.

In early 2026, we’ll be launching a brief client survey to better understand what matters most to you and how we can continue to improve your experience.

We look forward to working with you throughout 2026 and beyond.

Kind regards,
Susan Pringle, Managing Director

Autumn Budget 2025 – Key Changes and Planning Tips

Income Tax Threshold Freeze

The personal allowance tax bands have been frozen at £12,570 until 5 April 2031.

Planning Tips:

  • Rebalance income between spouses to maximise allowances
  • Maximise ISA and pensions allowances
  • Consider transferring  10% (£1,260) of your personal allowance to your spouse/partner if they are a lower earner      

Dividend Tax Rate Increase

From 6 April 2026, rates increase to 10.75% (basic) and 35.75% (higher rate).

Planning Tips:

  • Consider maximising pension contributions from your business. Pension contributions are the most tax efficient way to move money out of your limited business and ensure you are saving as much as possible towards your retirement

Savings Income Tax Rise

From 6 April 2027, savings income tax rates increase by 2%.

Planning Tips:

  • Use cash ISAs before 2027. Cash ISAs provide tax free growth
  • Review deposit accounts for competitive rates
  • Split savings between spouses to maximise the personal savings allowance (PSA). Basic rate taxpayers have a savings allowance of £1,000 and Higher rate taxpayers and above £500

Capital Gains Tax (CGT)

The annual exemption is unchanged and remains at £3,000.

Planning Tips:

  • Realise any gains before the tax year-end to use the allowance
  • Consider phased disposals of your assets to spread CGT liability
  • Consider using your ISAs for tax-free growth or withdrawals if larger amounts are needed

ISA Changes

From 6 April 2027, the cash ISA limit will fall to £12,000 for under-65s.

Planning Tips:

  • Maximise current £20,000 allowance before April 2027
  • Consider stocks and shares ISAs as an alternative strategy for long-term tax efficiency

Venture Capital Trust (VCT) Relief Cut

From 6 April 2026, VCT income tax relief drops from 30% to 20%.

Planning Tips:

  • Act before April 2026 if VCT investment suits your risk profile

Inheritance Tax (IHT) Nil Rate Band Freeze

The £325,000 main band and £175,000 residence band remain frozen until 5 April 2031.

Planning Tips:

  • Use your annual gift exemptions and any carry forward from the previous tax year
  • Consider lifetime gifting and trusts
  • Consider protecting the liability with life assurance
  • Review estate planning regularly

Pension Death Benefits

As confirmed in the 2024 budget, from 6 April 2027, most unused pension funds will be included in IHT calculations.

Planning Tips:

  • Review your financial position as it stands now and consider the change and impact of your IHT position post April 2027
  • Consider the various strategies such as gifting, investments and life cover to help mitigate any potential IHT issue
  • Check your beneficiary nominations ensuring your pensions on death are paid to those you wish to receive them


Salary Sacrifice Cap

From 6 April 2029, so still some years away, the National Insurance Contribution (NIC) savings for pension salary exchange to be capped at £2,000 pa.

Planning Tips:

  • Maximise pension contributions using salary exchange allowances before April 2029

This newsletter is for general information only and does not constitute advice. Tax rules may change. Please contact your usual Henderson Loggie Financial Planning adviser before taking action.