What you MUST do in the next 14 days to stop Rachel Reeves’ Budget wrecking your finances. Time’s very short, says money guru JEFF PRESTRIDGE. Act now or lose out

We are two weeks away from Chancellor Rachel Reeves launching a vicious tax attack on us all in the budget.

It will definitely be financial hell. But dear reader, this is not the time to cower and wait for the worst to happen.

Now is the time to make sure your household finances and long-term investments are solid enough to withstand Ms. Reeves’ onslaught.

Yes, most of us will be poorer post-Budget than we are now because of higher taxes on our wages or retirement income. It has become inevitable. Our wealth will also be jeopardized as a result of extra taxes on our pensions and investments.

But by taking a few simple steps in the coming days, you can ease some of the sting in the Chancellor’s tail by building a layer of resilience into your finances and investments.

FIRST STEP

The best starting point is to review your household finances: groan, you’ll thank me after November 26 (Budget Day).

So, might I suggest sitting down with a cup of the best Tetley and digging through your most recent bank statements (preferably from a year ago) and listing the regular payments made from your account? (Apologies to readers who have already done this.)

These payments will cover everything from broadband, council tax, electricity, gas and insurance to mortgages, other loans, mobile phones, subscriptions and water.

Then ask yourself a simple question: ‘Can I get better value for my money?’

Where services are not required (for example, a subscription to a movie streaming provider), do I really need them?

Some payments will be non-negotiable (for example your council tax bill). But the majority will not leave you room to find a better deal.

Maybe not immediately, maybe not until the Budget is published, but certainly in the coming months.

So, if you have a home loan, is it possible to get it cheaper? remortgage? Speak to your provider or mortgage broker who will do the totals for you.

If you have a fixed or discounted rate deal, be sure to make a note to shop before it runs out. Don’t just buy the new product offered by the current provider.

Even though car and home insurance premiums are falling, people are less inclined to shop around when renewing, so don’t renew quietly.

Use a comparison website to see if cheaper cover is available elsewhere and either switch or go back to your current insurer and swap. Some will match the price you find elsewhere.

The same tactic applies to broadband and TV packages. Existing providers will always reduce renewal prices if you find a more attractive package elsewhere and threaten to leave.

Also shop around and see if you can find a cheaper energy supplier.

For subscriptions for services you no longer use (for example, a fitness app or music streaming provider), note the automatic renewal and cancellation date (providers are now required to notify you in advance when a subscription is due for renewal).

The best starting point is to review your household finances: groan, you’ll thank me after November 26 (Budget Day).

Finally, if you are a low water user, consider purchasing a meter. For those who live alone or have a home with more bedrooms than its occupants, it may (or may not) cut your bills. Talk to your supplier.

SECOND STEP

If you have cash savings or money sitting in a bank account, these should work to your financial advantage, not the provider’s.

This means your cash should earn reasonable interest at half the cost, and most of it should be protected from tax.

The best home for savings (not money for home emergencies) is tax-free cash jesus. Treat it as your own mini tax-free haven.

You can currently save up to £20,000 per tax year in cash Jesus. This means a maximum of £40,000 per couple.

However, this cash Isa allowance is likely to be reduced to £10,000 per person in the Budget, with this reduction coming into effect from the tax year from 6 April 2026.

Those using Isas to invest (see below) will retain a £20,000 annual allowance and can use this solely to buy shares and funds or split it between a company. stocks and shares Isa and cash Isa (subject to £10,000 limit).

So if you’re a saver rather than an investor, use as much of this year’s available £20,000 allowance as possible; Make sure you choose the provider that pays an attractive interest rate.

But you need to make sure that the cash Isas you accumulate along the way are also earning attractive interest. If not, transfer them to a new provider that offers a better price.

If you have cash savings or money sitting in a bank account, these should work to your financial advantage, not the provider’s.

Interest earned on savings held outside cash Isa is protected by an annual personal savings allowance of £1,000 for basic taxpayers and £500 for those paying 40 per cent tax. income tax (Additional taxpayers cannot receive allowances).

For couples where one pays income tax at 20 per cent and the other pays 40 or 45 per cent, it makes sense for household savings to benefit from the larger allowance of basic rate taxpayers.

Another consideration regarding tax-efficient savings. Don’t underestimate NS&I’s Premium Bonds. All monthly prizes ranging from £25 to £1 million are tax-free and the annual prize rate is currently 3.6 per cent.

People aged 16 and over can hold bonds of up to £50,000, and purchases are also permitted by post, telephone and online.

THIRD STEP

For long-term investors, investment growth is the key to success. But if investments are not held in stocks and shares, taxes can eat into profits.

In last year’s Budget the Chancellor immediately increased the tax rate on capital gains from the sale of shares or investment funds from 10 per cent to 18 per cent for basic rate taxpayers and from 20 per cent to 24 per cent for higher rate taxpayers.

The only concession was that Ms. Reeves keep the annual report. capital gains tax (CGT) £3,000 exemption.

Capital gains taxes could rise again on November 26 as most Labor MPs believe they should be brought in line with income tax rates.

What is more likely, however, is an increase in dividend income tax rates, which apply at 8.75 percent, 33.75 percent and 39.35 percent for basic, higher and additional rate taxpayers respectively.

As with CGT, there is an annual tax exemption of £500.

For investors, you have a few options between now and the Budget.

You can sit tight. Or you can make a tax-free profit from the sale of shares, up to the current £3,000 CGT exemption.

It’s an approach that may appeal to investors discouraged by fears of an impending stock market crash. You can make even more profit by paying CGT at rates that may (or will not) be higher in a few weeks.

Alternatively, if you plan to invest for the long term, you can reorganize your investments to be as tax efficient as possible.

For example, you can use a process called ‘Bed and Isa’ to move some of your existing shares into your tax-friendly Isa.

It involves selling shares and then buying them back immediately in your Isa. The amount that goes into the tax wrapper will be included in your £20,000 annual allowance, while the ‘bed’ (sale) of shares will be tax-free if it is below the £3,000 CGT exemption.

It sounds complicated but a broker or investment platformThey will do the donkey work. You can also do ‘Bed and board’, where shares are included in your tax-friendly pension.

Labor underestimates inherited wealth. Last year Ms Reeves announced a reduction in inheritance tax breaks available to those who want to pass on assets such as farms and private businesses.

Another smart tactic is to transfer investments to your spouse, especially if they have a lower income tax rate, says Jason Hollands of wealth manager Evelyn Partners.

Shares subsequently disposed of by your partner are likely to attract a lower CGT bill than if they were held by you as a higher rate taxpayer.

Again, such peer-to-peer transfers arranged by your broker or investment platform are tax-free. Mr Hollands says: ‘By reorganizing your investments in this way you can benefit from two sets of annual tax-free dividend relief and CGT exemption. Plus two Isa benefits. ‘You reduce the family bill.’

FOURTH STEP

With an attack on tax-free pensions now unlikely, the Chancellor looks set to use the Budget to block the use of so-called ‘salary sacrifice’ pension arrangements by employers.

These are schemes set up to cut National Insurance bills for both workers and employers.

Experts believe that a crackdown on salary sacrifice is inevitable, but it will not happen immediately, it will happen next April at the earliest. Likewise, there will be no other changes to pension contributions, such as moving to a fixed discount rate.

‘Keep paying into your pension,’ insists Sarah Coles, personal finance manager at Hargreaves Lansdown.

Charlotte Kennedy of asset manager Rathbones echoes this. ‘Taking advantage of your annual retirement allowance [a whopping £60,000] “It remains good practice regardless of what the budget brings in,” he says.

FIFTH STEP

Labor underestimates inherited wealth. In last year’s budget, Ms. Reeves announced a budget cut. inheritance tax Facilities are provided for those who want to transfer assets such as farms and private businesses.

It also confirmed that unspent pension assets will be included in estates from April 2027; This is a move that will bring tens of thousands more households into the IHT net.

But Labor is not done with IHT yet. There is a limit on the amount you can give on the cards throughout your life, and this amount can go into the Budget.

There are a number of allowances that can be used to transfer your wealth to others before you die, which can help alleviate a future IHT bill.

These include an annual gift allowance of £3,000, which can be made to one person or several people. Additionally, if you have not benefited from the deduction in the tax year ending April 5 this year, you can also use it. This means you and your partner can transfer £12,000 to friends and relatives.

‘Small’ gifts of £250 per year can also be made to any number of other people.

This type of gift giving is simple, but you should keep records of when, to whom and the amount.

From now until the 26th of this month, this is the best time to be kind to your loved ones.

AND FINALLY…

On the 26th, make sure you have a healing cup of something powerful on hand.

You will need it. Mine will be a glass of single malt whiskey from Islay.