Budget Speculation: Keep Calm and Carry On…

After much speculation about what would be included in last year’s 2024 Budget, this year, it is no different.

Investors are holding their breath to the whispers of changes to capital gains tax, inheritance tax, pensions and maybe even ISAs.

Everyone’s wondering if it’s time to make a move or sit tight. Spoiler… we’ve played this game before, and the winning strategy is still the same. Pause on the panic and wait for the facts.

This Year's Speculation

Word on the street suggest the Treasury will be looking to find an extra £30 billion in tax rises.

But with the chancellor keen to stick to manifesto promises, income tax, VAT, and National Insurance are (probably) safe. This leaves room to generate the necessary revenue through adjustments to capital gains tax rates, pension reforms, changes to inheritance tax rules, restructuring ISA allowances, and various property tax adjustments.

But the biggest catch is that we don't know the details, timing, or even if these changes will happen.

Why "Wait and See" Is Still Sensible

Last year proved that reacting to speculation rather than facts typically leads to poor decisions. Waiting for official announcements means you can base decisions on actual proposals, understand the real impact on your situation, and avoid unnecessary complications.

For now, our recommendation is to focus on what you can control. Make sure you are using current allowances and reliefs. 

When the budget is announced, we'll have facts to work with. Until then, keep calm and carry on.