This is Money Podcast Bonus episode: The questions financial planners are being asked after the Budget... and the answers
Dec 4, 2025
Lisa Caplan, a financial planner at Charles Stanley Direct, shares insights into the public's pressing questions following the Budget. She clarifies the 25% tax-free cash limit on pensions and discusses concerns about pensions and inheritance tax. Caplan explains the implications of salary sacrifice changes and promotes using tax wrappers like ISAs for investments. She highlights a new cash ISA allowance structure aimed at encouraging investments and emphasizes the importance of starting early in wealth building. Tune in for expert tips on navigating these financial shifts!
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Salary Sacrifice Changes Are Delayed
- Salary sacrifice will remain but lose employer/employee NIC advantage from April 2029.
- Lisa warns the change may discourage extra pension saving despite income tax relief still making pensions valuable.
Use Salary Sacrifice Or Normal Contributions
- You can still use salary sacrifice to manage thresholds like child benefit or personal allowance removal.
- Alternatively, make normal pension contributions if you prefer to retain flexibility and tax benefits.
Passive Income Faces A 2p Rise
- The Budget adds 2p tax to dividends, interest and rent to align passive income with earned income tax.
- This increases tax on many investors and landlords, narrowing the gap with earned-income taxation.