Spend Now, Tax Later – The 2025 Budget

Chancellor Rachel Reeves delivered her first Budget with significant implications for employers, investors and those planning for retirement.

Lee Sullivan

Saturday, 15 November 2025

The Headlines

Chancellor Rachel Reeves' Autumn Budget 2025 brought sweeping changes that will affect almost everyone. Here's what you need to know as a Standard Life employee.

Important

This Budget contains some of the most significant changes to pensions and inheritance tax in decades. If you haven't reviewed your financial plan recently, now is the time.

For Employers: National Insurance Changes

The increase in employer National Insurance contributions from 13.8% to 15% will add significant costs to businesses.

For Standard Life employees, this doesn't directly affect your take-home pay, but it may influence future pay negotiations and hiring decisions.

Did you know?

Standard Life has confirmed that the NI increase will not affect existing pension contribution matching arrangements for employees.

For Investors: Capital Gains Tax

Capital Gains Tax rates have increased significantly:

Rate Type	Old Rate	New Rate	Change
Basic Rate	18%	20%	+2%
Higher Rate	24%	26%	+2%

If you're holding investments outside of your ISA or pension, now is the time to review your tax-efficient investment strategy.

Tip

Consider using your annual £20,000 ISA allowance to shelter future gains from CGT. You can also transfer existing investments into an ISA through a "Bed and ISA" arrangement.

For Pension Savers: Inheritance Tax Changes

From April 2027, pensions will be included in estates for Inheritance Tax purposes. This is a significant change that affects how pensions can be passed to beneficiaries.

What This Means For You:

•
Review your beneficiary nominations - Make sure they're up to date and reflect your current wishes
•
Consider whether to crystallise pension benefits - In some cases, it may make sense to draw down more from your pension now
•
Discuss estate planning with your family - These changes could significantly impact your inheritance plans

Important

The changes don't take effect until April 2027, giving you time to plan. But don't delay - the sooner you review your situation, the more options you'll have.

State Pension Triple Lock Maintained

Good news for future retirees: the triple lock on state pensions remains in place, meaning your state pension will continue to rise by the highest of inflation, earnings growth, or 2.5%.

Action Points

Here's your checklist following the Budget:

•
Review your ISA usage - Maximise tax-free allowances while they're available
•
Check pension contributions - Are you making the most of Standard Life's generous employer matching?
•
Estate planning - Book a session to discuss the IHT changes with an adviser
•
Capital gains planning - Consider timing of any asset sales before the new rates bite

Key Point

Standard Life employees have access to free financial planning sessions with Altor advisers. This is the perfect time to use that benefit.

Book a review with your Altor adviser to discuss how these changes affect your personal situation.

Key Takeaways

Capital Gains Tax has increased to 20% (basic) and 26% (higher rate)
Pensions will be included in estates for IHT from April 2027
Use your ISA allowance to shelter investments from future CGT
Standard Life's pension matching remains unchanged despite employer NI increases