“In this world, nothing can be said to be certain, except death and taxes.”
This quote, attributed to the American scientist and statesman, Benjamin Franklin, is one of the most commonly cited when it comes to personal finance.
While both are certainly unavoidable, it is absolutely worth taking steps to mitigate the effect of taxes, to make sure you are not paying too much.
As a professional rugby player, you could enjoy a lucrative career that provides you with an attractive income. Because of this, effective tax management is important and can help you maximise your earnings and secure your financial future.
Without effective planning, you may miss out on available incentives and find yourself paying more tax than you need to.
Two of the most important keys to managing your tax affairs are:
- Being aware of taxes that you may be liable for
- Having a plan that reflects your tax situation.
In this article, you can read about recent and potential future tax increases, and why it is important to have a clear plan for mitigating a large bill.
You could be affected by potential tax changes in the future
Before the last election, the Labour Party pledged not to increase Income Tax or National Insurance contributions for individuals. Because of this, it is unlikely that either will be changed in the forthcoming Budget.
However, the current freeze of the Personal Allowance (the amount you can earn before you start paying Income Tax) could mean more of your income is pulled into the taxable range as your earnings increase. More importantly, as the higher- and additional-rate thresholds remain frozen, the proportion of your income being taxed at 40% or 45% could also go up.
The government previously confirmed that the freeze will end in 2028, but any change to that could affect the amount of Income Tax you are liable for in the future.
Any increases to Capital Gains Tax (CGT) could also disrupt your financial plan. In the 2024 Budget, the government increased the rates of CGT to 24% for any gain falling within the higher- and additional-rate band, and 18% for gains within the basic-rate band.
Bear in mind that a basic-rate taxpayer may still pay some CGT at a rate of 24% if part or all of the taxable gain pushes them into the higher-rate bracket.
Further changes to CGT could affect you if you are selling investments, or have a buy-to-let portfolio and are looking to sell property.
These are just some of the potential tax changes the government is reportedly considering.
There will be plenty of speculation before any Budget changes are announced
There is no doubt that this government is facing strong financial headwinds.
You can read almost daily reports about the financial deficit, as well as the pressures on public services such as the NHS, and the need to invest in key infrastructure projects.
The pre-Budget period is always a time of speculation around which taxes could go up to help the chancellor balance the books.
In reality, you will not know what changes the government will make until they are actually announced on 26 November 2025.
That is why we would caution you against reacting to any of the rumours you may read or hear. Making sudden changes to your plans without expert advice could result in you taking actions that cost you money and impact your long-term financial security.
You need an effective game plan to secure your financial future
You would not go into a rugby match without a game plan that reflects what you want to do and the challenges you may face, and the same applies to planning your finances and securing your future.
As with a game plan, your financial plan will determine your objectives, and what you need to do to achieve them. It will also create a framework to help you manage your money and react to changing circumstances. It is far easier to deal with challenges, such as changes to taxation, if you have a plan in place, rather than simply winging it.
Your plan will also help you address key issues such as:
- How much you need to save and invest each month, and the most effective ways to do this
- Protecting your income and providing for your loved ones if you incur a serious injury
- Planning for your post-rugby career once you stop playing.
An effective plan can help you take advantage of tax incentives
While you will benefit from the peace of mind you get from having a plan in place, this is just the start.
With our support, you can also adjust your plan to mitigate the amount of tax you are liable for. You might achieve this by:
- Making full use of your annual ISA allowance
- Utilising the tax benefits available through pension contributions
- Finding the most tax-efficient ways to sell or transfer ownership of certain assets.
With a plan in place, you will have the comfort of knowing that you are managing your money effectively, and can adapt to any tax changes announced in future Budget statements.
Get in touch
If you would like to talk about any of the tax issues you have read about here, then please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate tax planning.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.