Money Marketing’s Weekly Must-Reads: Top 10 Stories
The Autumn Budget is done and dusted, leaving advisers with plenty to untangle. From a new £12,000 Cash ISA limit for under-65s to a clampdown on salary sacrifice National Insurance relief, we unpack the measures that will matter most to your clients in this week’s top 10.
Here is the full rundown of our top ten:
Autumn Budget 2025: Cash Isa tax-free allowance lowered to £12,000
Chancellor Rachel Reeves has officially confirmed a split in the ISA allowance. The total limit stays at £20,000, but the Cash ISA portion has dropped to £12,000 for those under 65, aiming to nudge savers into equities. While AJ Bell and Nucleus fear this creates baffling complexity for everyday savers, Scottish Friendly has welcomed the push, arguing it is a vital step toward building a stronger investing culture in Britain.
Government announces changes to salary sacrifice
The Chancellor has officially targeted salary sacrifice, confirming contributions exceeding £2,000 will face National Insurance charges from April 2029. Experts at Evelyn Partners and Hargreaves Lansdown slammed the “stealth tax,” warning it penalises efficient saving and hurts private sector businesses. While public sector schemes remain largely untouched, critics argue this counter-intuitive policy severely undermines pension adequacy goals. Advisers must now help clients navigate this widening divide before the new rules bite.
Chancellor hikes dividend tax rates by two percentage points
Rachel Reeves has confirmed a two percentage point hike in dividend tax, effective April 2026. Evelyn Partners described the move as a “kick in the teeth” for entrepreneurs, while investors outside ISAs also face squeezed returns. With the basic rate climbing to 10.75%, Hargreaves Lansdown advises immediate action. They warn clients must prioritise sheltering assets in efficient wrappers now, or risk the Treasury taking a larger slice of profits.
Government to consult on scrapping Lifetime Isa
The government has confirmed it will launch a consultation in early 2026 to discuss scrapping the Lifetime ISA. Budget documents reveal plans to potentially replace the “confused product” with a simpler alternative for first-time buyers. OneFamily welcomed the move but urged raising the £450,000 cap, while Quilter praised the decision to address the withdrawal penalty flaws. Advisers should watch this space as the popular 25% bonus faces a major shake-up.
New ‘mansion tax’ to raise £400m
Budget leaks confirmed a new ‘mansion tax’ hitting owners of £2m+ properties from April 2028. This council tax surcharge ranges from £2,500 to £7,500, with revenue flowing straight to central government. While Evelyn Partners predicts a transaction rush to beat the deadline, Savills calls it the ‘least worst outcome’ for prime markets. With a deferral option available, experts suggest it encourages downsizing without causing a chaotic sell-off in wealthy London.
Chancellor swerves ‘own goal’ tax-free cash chaos
Chancellor Rachel Reeves has officially dodged a political “own goal” by confirming the pension tax-free lump sum remains untouched. After months of feverish speculation caused panic withdrawals among wealthy savers, experts at AJ Bell and Hargreaves Lansdown have breathed a collective sigh of relief. However, Burges Salmon warns that while the cap stays put, inflation will continue to erode its real value, impacting public sector workers with defined benefit pots.
Autumn Budget 2025: VCTs relief cut next year
Rachel Reeves has confirmed income tax relief will drop from 30% to 20% in April 2026. The AIC warns this undermines incentives for backing startups, while Wealth Club predicts a funding drought. However, experts forecast a short-term frenzy as investors race to “buy now while stocks last” before the deadline. On a brighter note, reforms will allow schemes to back more mature businesses.
Standard Life appoint new CEO of pensions & savings
Standard Life has officially appointed Angela Byrne as the new CEO of pensions and savings, effective January 2026. Joining from NatWest, where she served as interim retail banking CEO, Byrne takes the reins from Colin Williams. Phoenix Group CEO Andy Briggs has praised her ability to build modern propositions as the firm pivots from consolidation to growth. Byrne is eager to drive vital innovation for the group’s 12 million customers.
Reeves’ Budget makes UK “shambolic laughing stock for international investors”
Kemi Badenoch has branded Labour’s UK a “shambolic laughing stock,” tearing into Chancellor Rachel Reeves for breaking promises. With dividend tax rates hiked and salary sacrifice perks squeezed, experts warn the moves are a “kick in the teeth” for entrepreneurs. Badenoch also slammed the “shameless” rise in landlord taxes, which the OBR predicts will drive up rents. The opposition claims Reeves’ promise of economic stability is now looking rather shaky.
M&G veteran fund manager to retire after 20 years
M&G Investments has confirmed veteran fund manager Steven Andrew will retire in March 2026, wrapping up a distinguished 20-year stint. Andrew has played a pivotal role in shaping the firm’s £11bn multi-asset franchise, championing stability through market cycles. As he steps down, M&G has handed the reins to “next generation” talents Craig Moran and Stefano Amato. Planners have assured investors this smooth transition keeps the team’s disciplined philosophy on track.
