HELPLINE: 
Timing is everything and the cost of doing nothing may be high if those with certain UK assets don’t act before the Budget, says Daniel Butcher, founder of DTB Wealth Management
The UK’s next Budget is expected to land on 26 November 2025 and it may reshape how pensions, ISAs and inheritances are taxed. This means there could be serious consequences for anyone holding UK assets while living abroad or planning a move.
Under the current rules, up to 25% of a UK pension pot can be taken tax-free as a Pension Commencement Lump Sum (PCLS). This long-standing benefit is under review and may be reduced, capped or even abolished – and future withdrawals could be taxed at your full marginal rate.
For anyone planning to retire or relocate to France, this could be the last chance to unlock tax-free cash before the window closes.
“Timing is everything – waiting until after the Budget may mean you lose the tax-free benefit of PCLS, see ISA benefits curtailed, or face new IHT liabilities,” said Daniel. “Pre-emptive withdrawals (PCLS, ISA) while still a UK resident may allow you to ‘lock in’ favourable tax treatment before changes take effect. Once you become a French tax resident (or move elsewhere), UK tax advantages on those wrappers may diminish or disappear altogether.”
ISAs may also face reform in 2026. Possible changes include lower allowances, a rebalance between cash and stocks ISAs, or a simplification of the structure. Any contributions made before new rules are introduced should remain protected, but, once outside the UK, ISAs lose most of their tax advantages under French rules – another reason to review holdings early.
“If changes are made, contributions or withdrawals carried out beforehand are more secure,” said Daniel.
In terms of Inheritance Tax (IHT), reforms already happened in April 2025, shifting from domicile to residency-based taxation. Long-term UK residents (10 of the past 20 tax years) now face IHT on worldwide assets for up to 10 years after leaving the UK. From 2027, pensions will also fall under IHT, closing a key exemption. French nationals returning home must be cautious to avoid double exposure under UK and French succession laws.
“My advice is to review pensions, ISAs and IHT exposure now as acting before the Budget could help secure existing reliefs – and prevent costly surprises later as delay means risking losing the tax-free window.”