The Autumn Budget and your investments

As the Autumn Budget approaches on 28 October, you may be wondering what potential policy changes could mean for your wealth. Capital Gains Tax (CGT), pensions, ISAs and inheritance planning are among the topics attracting attention, but speculation is not a reliable basis for investment decisions. The value of investments can fall as well as rise and you may get back less than you invested.

Past Budgets show how quickly proposals can change. Assumptions made in advance may prove wrong, so trying to predict announcements can lead to rushed decisions. You could be better off focusing on your long-term financial plans and making sure they can adapt if circumstances change.

That’s not to say you shouldn’t stay informed. Here are several issues worth keeping in mind before Budget Day.

The possibility of changes to CGT has attracted particular attention. Some commentators have suggested that the gap between CGT and income tax rates could narrow, which could mean a significant increase for higher-rate taxpayers. No changes have been announced, though, and acting on what might happen could result in crystallising gains, changing your portfolios or bringing forward transactions without good reason.

If selling an asset is already part of your financial strategy, there may be sound reasons to proceed. Any decision should reflect your circumstances, objectives and long-term plan rather than short-term speculation. Tax rules can change, but investment decisions made in haste can have lasting consequences.

If you have concerns, speak to your Evelyn Partners adviser before taking action. They can help you consider different scenarios and how they fit with your wider financial plan.

CGT is not the only area under discussion. You should also consider possible changes to inheritance tax (IHT). It may be helpful to think about what you want to provide for yourself and your family, how much wealth you may need to retain and whether gifts or other arrangements could support your aims in a tax-efficient way.

Future governments could also revisit ISA allowances or aspects of the pensions regime. One confirmed change will affect the IHT treatment of pensions. For deaths on or after 6 April 2027, most unused pension funds and pension death benefits will be included in the estate for IHT purposes. This reduces the long-standing tax advantage of keeping wealth within a pension and could have significant implications for intergenerational wealth planning.

Across all these areas, the same principle applies: major financial decisions should support your existing plan and personal objectives.

The most immediate market effects may be seen in sterling and government bond yields, rather than global equity markets. Currency movements can affect inflation, the cost of imports and spending power overseas. These factors can influence decisions ranging from mortgage refinancing to cash savings and fixed-income investments.

The UK’s major stock market indices, including the FTSE 100 and FTSE 250, include many internationally focused businesses. Their performance is often influenced more by global economic trends than by UK policy decisions alone.

Markets will also be watching how government spending and tax decisions interact with interest rate policy. Investors will assess whether Budget measures support economic growth, add to inflationary pressures or affect the Bank of England’s scope to reduce interest rates.

The UK economy has experienced a prolonged period of relatively low growth, contributing to many of the country’s fiscal and economic challenges. Even so, there are reasons for cautious optimism. The UK has enduring strengths, including world-class educational institutions, a strong legal framework and an innovative business environment.

Artificial intelligence could also play an important role. If it delivers the productivity gains many economists expect, it may support long-term economic growth, wages and corporate profitability. Alongside greater stability and investment, these strengths could help create a more supportive environment for businesses and investors.

As Budget Day approaches, it is natural to consider what policymakers might announce. But successful investing does not depend on predicting every government decision. You should focus on what you can control: maintaining a diversified portfolio, following a disciplined investment strategy and keeping your financial plan aligned with long-term goals.

If the Budget brings changes that affect your plans, we’re here to help you understand what they mean and consider any response carefully. Until then, avoid rushed decisions and seek professional advice. If you’d like to discuss your own situation, book an appointment online or get in touch with your usual Evelyn Partners contact.

To access expert analysis of the announcements the day after the Budget, register for our online webinar.