Take Time To Assess Budget Changes Says Belmayne

Dronfield-based financial planners, Belmayne, are urging investors to seek professional advice before making any knee-jerk changes to their portfolios following yesterday’s budget.

Chancellor, Rachel Reeves, announced a number of updates to the inheritance and capital gains tax regimes that will affect pensions and investments.

Martin Birch, Belmayne’s managing partner, said: “Whilst the budget may have seemed harsh, it is not unusual to see significant tax rises after an election. Speculation in advance of yesterday’s news was rife, but now we have the facts, we can analyse the impact on our clients and make adjustments, where necessary. The changes to pensions aren’t being implemented immediately, so there is no need to make hasty decisions.”

Perhaps the most significant change for retirement savers was the announcement that unused pensions and death benefits will be included within the inheritance tax regime from 2027. When coupled with the freeze on the nil rate band at £325,000 per individual until 2030, it means a greater proportion of families will be paying tax on a loved one’s estate.

Inheritance tax relief on shares in the Alternative Investment Market and similar markets is also being cut to 50%, whilst increases in the rates of capital gains tax mean basic rate taxpayers will pay 18% on the disposal of assets, other than primary residences. For higher rate taxpayers, the rate will be 24%.

Martin added: “Investors need to remember that financial planning is a long-term commitment and whilst the budget means some clients may need their plans restructured, we can use the tools available to us to assess its impact on their tax liabilities before jumping to any conclusions. If action needs to be taken, we can then implement it in a calm and measured manner.”

Belmayne is celebrating its 20th anniversary this year. As a truly independent firm, it focuses on the aspects of financial planning that can be controlled, for example, risk, tax allowances and the costs of investing, giving clients the freedom to enjoy their retirement without worry.

For more information about Belmayne’s wide range of financial planning services, telephone (01246) 298181, visit www.belmayne-ifa.com or follow the firm on X, @belmayneifa.