Finance companies all reacted differently to the 2025 Autumn Budget, and of course there were mixed feelings about it.
The Budget impacted the finance sector by boosting investment via enhanced Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCTs), easing some taxes on UK share listings, and simplifying rules for multinationals. But this also increases burdens through rising costs for high-value properties, pension salary sacrifice caps, and changes to carried interest, while missing opportunities for fintech support, leading to mixed reactions from the sector.
Positive impacts and incentives
UK listings:
No stamp duty for three years on shares in UK-listed companies to boost London’s appeal.
Enterprise investment:
Expanded Enterprise Management Incentives (EMI) and increased limits for EIS/VCTs to channel funds into startups.
Corporates:
Relaxed rules on Advanced Corporation Tax (ACT) and simplified transfer pricing for multinationals.
Savings and investments:
Mandated ISA platforms to highlight UK-focused funds, encouraging domestic investment.
Challenges and costs
Tax burdens:
Increased taxes on high-value property, savings, and dividends, plus a significant pension salary sacrifice freeze.
Carried interest:
Changes from April 2026 will increase tax on fund manager profits and add reporting burdens.
Financial services support:
Missed opportunities for direct fintech/digital banking support, raising concerns about future competitiveness.
Interest rates:
Fiscal stimulus raised inflation expectations, keeping interest rates higher and increasing borrowing costs for businesses/households.
What were the reactions from the finance sector?
Mixed feelings:
While some incentives were welcomed, many in the sector felt the Budget lacked strategic support for financial services growth post-Brexit, focusing more on immediate tax rises.
Investment shift:
Expectation of a shift from cash ISAs to stocks & shares ISAs, and potential changes in investor portfolio strategies due to tax changes.
Gareth Anderson from Allica Bank held a seminar titled ‘Autumn Budget breakdown & how to respond’
We have FREE insightful seminars at financeSHOWCASE – make sure you keep an eye out on the schedule for next year – click here to see who will be speaking in 2026.
