Budget day is set - 10 things you must do before Rachel Reeves's £25bn tax grab

Millions of taxpayers will be dreading the upcoming Budget, with Rachel Reeves expected to hike taxes by at least £25billion, and possibly more. It could end up matching last year's £40billion haul.

We now know the date. The problem is we don't know which taxes are going to increase. Here are 10 steps everybody should consider. We can't avoid every levy, but we can minimise our exposure. The big risk is that acting on speculation can backfire. There are always surprises on the day - taxes that go up, and others left untouched. So tread carefully and consider taking advice.

1. Don't panic. Every Budget sparks endless speculation about what the chancellor will do. This time the noise will be deafening. Last year some pension savers withdrew their tax-free cash fearing it would be cut. It wasn't, and they regretted moving early. Never act in haste.

2. Use your ISA allowance. There's no safer shelter than the annual £20,000 ISA wrapper. Returns inside are free of income tax, dividend tax and capital gains tax (CGT) for life. Reeves's budget "mastermind" Torsten Bell has previously suggested axing the dividend allowance and hiking CGT from today's 24% to 37%. Tax campaigners want it aligned with income tax at 40% or 45%. Money is safer inside an ISA.

3. Consider the Lifetime ISA too. Younger savers can put in up to £4,000 a year and get a 25% government bonus worth up to £1,000. Bell has floated scrapping the Lifetime ISA altogether. Making a contribution before November could be a no-brainer but be warned: you must use the cash to buy a first home or keep it invested until 60. Otherwise penalties apply.

4. Consider topping up your pension. Contributions currently attract tax relief at your marginal rate of 20%, 40% or 45%. Labour may level this to a flat 25%, hitting higher earners. I have a sneaking suspicion that the £60,000 annual allowance could be trimmed to £40,000 or £30,000, but that's just me guessing. If you can afford it, make contributions now and use carry forward rules from the last three years. Remember: you can't touch money in a pension until you're 55 (rising to 57 from 2028).

5. Plan your tax-free cash. Bell has also talked about cutting the hugely popular 25% pension tax-free lump sum cap from £268,275 to £100,000 or even £40,000. Again, we don't know if he'll follow through. It's best to leave money in your pension to grow tax-efficiently but if you were planning to take it, it may be worth acting before the Budget.

6. Use joint allowances. Married couples and civil partners can transfer assets between them without triggering tax, known as interspousal transfers. Moving savings or investments into the name of the lower taxpayer can cut income tax and dividend tax bills. The same applies to assets liable for capital gains, where each has a £3,000 annual exemption.

7. Consider selling assets. If already thinking of selling an asset such as a second home, it may be worth acting before November, just in case Reeves lifts CGT. But only do this if it was already in your plans. Don't let tax fears dictate your life decisions. CGT may not be touched. And remember, selling property can take ages.

8. Consider Premium Bonds. More than 22 million of us already hold them, in the hope of winning one of two £1million monthly jackpots and smaller prizes. Crucially, all winnings are tax-free. You can hold up to £50,000 and the annual prize rate is currently 3.6%, but returns are unpredictable. You could win nothing, which is no good for those who rely on a regular income from their savings.

9. Take a look at gilts. UK government bonds pay interest, but the real perk is that most of the return comes from tax-free capital gains, which are free of capital gains tax. This works better for higher rate taxpayers. Gilt yields are climbing as Labour bungles the economy.

10. Finally, inheritance tax. The left hate inherited wealth, and middle-class families could be in the firing line. Reports suggest Reeves may cap lifetime gifts, abolish exemptions or even scrap the seven-year rule. These changes are unlikely to apply retrospectively, so families considering transfers might want to act first. But the rules are complex, so advice is essential.

The Budget will land faster than you think, so don't hang around.