As a bridging lender, Reim Capital keeps a close watch on changes that impact property investors and business owners. The latest Budget brings several notable shifts across pensions, savings, taxation and property wealth that could influence future financial planning.
From April 2029, National Insurance will be applied to salary-sacrificed pension contributions above £2,000 per year, a move set to raise £4.7bn. The state pension is also increasing – £440 per year for the basic state pension and £575 per year for the new state pension. Savers will see the annual cash ISA allowance reduced to £12,000 from the current £20,000 limit, while over-65s will retain access to the full £20,000 allowance.
A new Mansion Tax is being introduced for properties valued at over £2m. Homes between £2m and £2.5m will face a £2,500 annual charge, with properties worth £5m paying up to £7,500. This measure alone is expected to generate £0.4bn, and could influence holding and purchasing decisions at the top end of the property market.
Small businesses will see support through business rate reductions for around 750,000 retail, hospitality and leisure properties, funded by increased rates on premises above £500,000 in value. Meanwhile, tax on dividends, property and savings income will rise by 2 percentage points, generating an additional £2.1bn.
At Reim Capital, we stay ahead so you can make informed decisions in a shifting landscape. If you’d like to understand how these changes could influence your funding strategy or the property sector more broadly, we’re here to help.
