With the Budget set for 26 November, many bp employees are asking whether they should do something now. Should they panic?
The short answer is no. But you do need to understand what’s actually happening.
Open any financial publication and you’ll find headlines about pension changes, tax-free cash disappearing, and inheritance tax bills exploding. Some of it’s grounded in reality. Much of it isn’t.
As we wrote before the last Budget, we won’t make knee-jerk reactions to speculation. We base decisions on confirmed information. Research from Harvard Business Review shows data-driven organisations are three times more likely to make better decisions than those relying on speculation.
Let’s separate fact from fiction.
What we actually know
Here’s what’s confirmed by the government, not speculation.
The Budget date
Wednesday, 26 November 2025.
Pension inheritance tax from April 2027
This is confirmed policy, announced in October 2024 and clarified in July 2025. From 6 April 2027, most unused pension funds will be included in your estate for inheritance tax purposes.
Key points:
- Previously, pensions were usually outside your estate for IHT
- From April 2027, they’ll be counted alongside your other assets
- Death-in-service benefits remain IHT-free
- Around 10,500 estates will face IHT bills they previously wouldn’t
- Average IHT liability expected to increase by around £34,000 for affected estates
For bp employees with substantial pension savings, this is the most significant confirmed change coming. It doesn’t take effect until April 2027, giving you 16 months to adjust any plans accordingly.
Economic pressure
The chancellor needs to raise between £18 billion and £28 billion to meet fiscal rules. She’s publicly stated that “taxes on the wealthy will be part of the story” in the Budget.
This context matters. It tells us the direction of travel, even if we don’t know specific measures yet.
Why we’re not discussing speculation
You’ll notice this article doesn’t include a “what might be announced” section. That’s deliberate.
Last year, rumours circulated about tax-free cash changes. Some people panicked and withdrew their pension tax-free cash immediately. The change never materialised, and those rushed decisions cost people tens of thousands in unnecessary tax.
The media will continue publishing speculation until 26 November. Some may be accurate. Much won’t be. You can’t make good financial decisions based on guesswork.
Our commitment is simple. We won’t advise based on speculation, and we don’t recommend you act on it either.
What you can do now
Sensible, no-regret actions that make sense regardless of what happens on 26 November.
1. Review your current position
Start with an overall financial health check. How much have you got? What is coming down the track? Do you have any big expenditures or significant increases to regular expenses? Do you feel financially secure?
With pension matching, bp share schemes and your own saving and investing, is this going to be enough to help you reach your financial goals?
Does your bp package adequately cover the big risks, such as dying, becoming seriously ill or injuring yourself?
These questions, plus many others, will help you check in on your financial plan, when you’ll reach financial independence and what you want your life to look like.
2. Use this year’s allowances
The 2024/25 tax year ends 5 April 2025. Unused pension annual allowance, ISA allowance (£20,000), Capital Gains Tax allowance (a measly £3,000, but it all counts) and other tax allowances expire then. Using these before they disappear is sensible regardless of Budget changes.
3. Don’t make irreversible decisions on speculation
Taking tax-free cash, stopping pension contributions, or restructuring finances based on rumours can backfire badly. Once you’ve taken tax-free cash, you can’t put it back.
4. Get your estate planning in order
With pension IHT confirmed for April 2027, now is the time to review pension beneficiary nominations, consider whether your will needs updating, and look to put LPAs in place if you haven’t already (see our previous article on LPAs).
This isn’t speculation-based planning. It’s responding to confirmed policy with 16 months’ notice.
What happens next
On 26 November, the picture will become clear. We’ll analyse the actual announcements, post a summary review with any key takeaways, action points or complicated implications, plan to run a face-to-face seminar in collaboration with our accountants, and run webinars for bp employees to discuss the implications, should there be demand.
Until then, stay grounded in facts, not speculation.
The bottom line
Budget uncertainty is uncomfortable. Speculation is designed to grab attention and generate anxiety.
But good financial planning isn’t about predicting the future or reacting to every rumour. It’s about building a robust strategy that can handle multiple scenarios, then adjusting based on confirmed information.
If you’re a bp employee earning over £100,000, yes, you should be paying attention. Yes, changes may be coming. But no, you shouldn’t be making dramatic financial decisions based on newspaper headlines.
When the dust settles on 26 November, we’ll know what we’re dealing with. Until then, focus on what you can control.
Want help reviewing your financial position before the Budget? Get in touch with us so that we can arrange a free intro call with one of our Financial Planners who specialises in helping bp employees navigate tax changes.
Who can you think of that’s worried about the upcoming Budget? Share this article with them. It might help them avoid costly panic decisions.
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This is for educational purposes only. It’s not personal advice and we’re not recommending any specific tax planning strategies. Everyone’s situation is different, so what’s right for one person might not be right for another. Tax rules can change and depend on individual circumstances.
While we have extensive experience helping bp employees and alumni optimise their benefits, Emery Little operates independently and is not affiliated with or endorsed by the bp group, including BP Pension Trustees Limited, on behalf of the BP Pension Fund. This allows us to provide objective, independent guidance focused solely on your best interests.
