5 steps to shield your money from the taxman before the Budget

Chancellor Rachel Reeves is preparing for her first Budget on 30 October, with experts predicting a tax raid. Labour has pledged not to raise income tax, National Insurance, or VAT, but tax increases are likely in other areas. Potential targets include capital gains tax, inheritance tax, and pension tax relief. To shield your money from the taxman, consider topping up your pension, taking advantage of ISA allowances, and looking into “Bed and ISA” transactions. Pre-emptive steps can help protect your finances ahead of any changes announced in the Budget. “This process, known as ‘Bed and ISA,’ is recommended for those with portfolios beyond ISAs, despite associated fees. Inheritance tax strategies include gifting up to £3,000 annually and using CGT allowances efficiently, as potential tax hikes loom. It is advised not to rush into decisions, such as taking large lump sums from pensions, which could impact long-term financial stability.”

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