What can we expect in the Autumn Budget?
As Chancellor Rachel Reeves prepares to deliver the Autumn Budget on the 26th of November 2025, speculation is mounting across the financial, property, and business sectors as the UK economy faces sluggish growth and elevated borrowing costs. With the Chancellor sticking to Labour’s fiscal rules, it leaves her with limited room to manoeuvre and she may be forced to consider creative tax measures in order to balance the books. We’ve put together the key predictions from across the financial markets.
Property Tax Overhaul
Stamp Duty Land Tax (SDLT) could be replaced with a national property tax on homes valued over £500,000.
Council Tax reform is also on the table, potentially shifting to a value-based system to address regional disparities.
Landlords may face National Insurance charges on rental income, which could raise up to £2 billion annually.
Pensions and Inheritance Tax
The 25% tax-free pension lump sum may be capped or reduced.
Pension tax relief could shift to a flat rate, reducing benefits for higher earners.
From April 2027, unused defined-contribution pensions will be included in Inheritance Tax (IHT) calculations.
A lifetime cap on tax-free gifts is being considered, potentially removing taper relief.
Capital Gains Tax (CGT)
CGT rates were already increased in 2024; further hikes or asset-specific rates (e.g., second homes) may be introduced.
Private residence relief could be removed for homes sold above £1.5 million.
Income Tax Threshold Freeze
The freeze on income tax thresholds may be extended beyond 2028, pulling more earners into higher tax bands.
Support for SMEs
Small businesses are hoping for business rates reform, capital allowances, and relief from rising employer NICs.
Given the fiscal constraints, generous support may be limited.
Whether you're a homeowner, landlord, investor, or small business owner, the Autumn Budget 2025 could have significant implications. However, while many of the proposals remain speculative, the overarching theme is clear: fiscal discipline with targeted reform. The Chancellor faces a delicate balancing act—stimulating growth, maintaining market confidence, and honouring manifesto commitments not to raise taxes on "working people."
As we approach Budget Day, staying informed and seeking professional advice will be key to navigating the changes ahead.
References
2025. Why Rachel Reeves Faces A Very Tricky Autumn Budget. https://www.politicshome.com/.
2025. Rachel Reeves budget ‘fear and rumour’ leads to urgent pension warning. https://www.express.co.uk/.
2025. Autumn Budget: inheritance tax and other possible changes. https://adviserservices.fidelity.co.uk/.
This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice.
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