Closing out the year and welcoming in 2026 can be a good time to reflect. January offers an opportunity to review your finances ahead of April’s tax year end.
This means you have plenty of time to assess and implement any changes, all without any last-minute rush. J.P. Morgan Personal Investing wealth experts are on hand to assist clients via our restricted, paid advice service or our free guidance offering.
Firm ground on which to set plans
Speculation around government policy prompted some savers to withdraw their money from their pensions ahead of the Autumn Budget. This was partly due to fears over mooted cuts to tax-free cash amounts, which did not materialise. The dust has now settled, and there is firm ground upon which to set plans for the future.
It’s good to remember that, if they do affect you, many of the policy changes set out by the chancellor won’t be implemented for some time.
Policy changes worth noting include:
- The cutting of the Cash ISA allowance to £12,000 per tax year, effective from the 2027/28 tax year (over 65s maintain their full Cash ISA allowance).
- An increase to tax on property, dividend and savings income. The ordinary and upper rates on dividend income will increase by two percentage points from April 2026, while the additional rate will remain unchanged. Tax on savings income will rise by two percentage points on all bands from April 2027, while separate tax rates will be levied on property income from April 2027.
- The reform of salary sacrifice schemes. Contributions to pensions via salary sacrifice over £2,000 per tax year will no longer be exempt from National Insurance Contributions as of 2029.
You can read more about key changes in the Autumn Budget and what they mean for investors in our recently published article.
A strong year for markets despite the headlines
Financial markets were also subject to a lot of commentary this year, owing to factors including the impact of US tariff policy and a global surge in investment in artificial intelligence. Markets briefly stumbled in the spring, yet global equities have delivered positive double-digit returns over the 11-month period to the end of November. Many investors who kept their heads during a tumultuous year will have been rewarded.
This year’s market performance serves as a strong reminder that staying invested, even during periods of volatility or negative headlines, can be the key to a sound financial future.
To speak to someone about how you can best plan for your future, get in touch for free financial guidance.
About this update: This video was filmed on 8 December 2025.
Source for Outlook data: MacroBond, J.P. Morgan Personal Investing and Bloomberg.
Risk warning
As with all investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Past performance and forecasts are not a reliable indicator of future performance. We do not provide investment advice in this update. Always do your own research. We provide 'restricted advice', meaning we only make investment recommendations on the products and services that we offer. Tax rules vary by individual status and may change.