UK Tax and Finance Changes Since the 2024 General Election: What You Need to Know
By Georgia Holmes
From pension inheritance rules and frozen tax thresholds to changes in Capital Gains Tax, ISAs and business rates, discover the major UK tax and financial reforms since July 2024 and what they could mean for your money.
Since the UK general election in July 2024, a series of tax and financial changes have affected individuals, pension savers, retirees, landlords, investors, families and business owners.
The changes have come through the Autumn Budget 2024, the 2025 Budget and subsequent policy announcements. Some have already taken effect, while others are scheduled to come into force over the next few years.
For anyone planning their finances, understanding these changes is important. A decision about pension contributions, selling an investment, passing on an estate or running a business may have different tax implications depending on when it happens.
So, what has changed since the last general election? Here is a guide to the major UK tax and finance developments from July 2024 to October 2026, including what they could mean for your financial plans.
Pension and Retirement Changes
Pensions have been a major focus of tax reform, particularly the treatment of inherited pension wealth and the tax advantages available through certain contribution arrangements.
Will unused pensions be subject to Inheritance Tax?
One of the most significant announced changes is the plan to bring most unused pension funds and certain pension death benefits into the value of an estate for Inheritance Tax (IHT) purposes.
The change is scheduled to take effect from 6 April 2027. Under the planned rules, unused pension funds that previously could often be passed to beneficiaries outside the estate for IHT purposes may become subject to IHT, depending on the circumstances.
This could affect people who have deliberately retained pension savings rather than spending them during retirement, partly because of the existing inheritance tax treatment.
The change does not mean every inherited pension will automatically incur IHT. The outcome will depend on the value of the estate, available allowances, exemptions and the type of pension benefit involved. The government has also confirmed that registered pension scheme death-in-service benefits will be excluded from the estate for these purposes.
What this means for you: If you have substantial pension savings and intend to pass wealth to your family, review how your pension fits into your estate plan. However, do not make withdrawals or change beneficiaries solely because of the announced reforms without considering income tax, retirement needs and the wider implications.
Is pension salary sacrifice changing?
Salary sacrifice allows employees to give up part of their salary in exchange for an employer pension contribution. Depending on the arrangement, this can reduce the National Insurance Contributions (NICs) payable by both the employee and employer.
The 2025 Budget announced a limit on the amount of pension contributions made through salary sacrifice that can receive NIC relief.
From 6 April 2029, the planned cap is £2,000 per employee per year. Contributions above that amount will generally no longer receive the same NIC advantage through salary sacrifice, although the normal pension tax-relief system will remain in place.
This is a future change, not a limit on the total amount you can contribute to a pension.
What this means for you:Employees who use salary…