The Chancellor will deliver the Autumn Budget on Wednesday 26 November 2025. This is expected to be the government's first major fiscal event focused on "an economy not working well enough for working people". With borrowing pressures still high, you should be prepared for targeted tax rises and a few surprises.
1. Tax rises to tackle the deficit
Stealth over headline hikes
Independent analysis points toward 'stealth' rather than headline increases — with freezes to thresholds, targeted levies, and possible changes to wealth or property taxes. Policy watchers expect more "base broadening" rather than rate hikes in Income Tax, NI or VAT.
Rental income & mobility taxes
Rumours include National Insurance on rental income and even an exit tax for those moving wealth offshore. No policy yet, but these ideas have been floated by think tanks and economists to raise revenue without headline rate changes.
What this could mean for you
If you're relying on property or investment income, you could face higher effective taxation. You should consider reviewing wrappers (ISAs, pensions) and spousal transfers to mitigate exposure.
2. Capital Gains Tax (CGT) & Inheritance Tax (IHT)
CGT tightening
The 2024–25 Budget already cut the annual CGT exemption to £3,000, and commentators expect further alignment between CGT and Income Tax rates.
IHT pressure points
Inheritance Tax is also in focus. Analysts predict the freeze on thresholds will continue, dragging more estates into scope. There are also many rumours about ending the long-standing exemption of unused pension funds — on a person's death these would become part of the taxable estate for IHT purposes.
What this could mean for you
Estate planning will climb the agenda. You might benefit from revisiting gifting strategies, trusts and life cover to fund future IHT liabilities.
3. Property-tax shake-up (Stamp Duty & Council Tax)
Stamp Duty reform
Persistent speculation suggests a reform of Stamp Duty Land Tax (SDLT) — potentially replacing it with a proportional property tax, or re-banding council tax. With property transactions still subdued, the Treasury may opt for changes to stimulate movement while generating steady revenue.
What this could mean for you
High-value homeowners and landlords could see higher recurring costs, while first-time buyers or downsizers may benefit. If you're looking at a completion date that straddles Budget day, speak to us for more information.
4. ISAs & Pensions – nudging money into markets
Investment emphasis
The government has consulted on reforms to encourage savers to invest more productively. A "cash cap" within the £20,000 ISA allowance was explored earlier in the year but paused following sector feedback. A broader ISA simplification is expected, with incentives for investment ISAs and possible consolidation of product types.
Allowance reviews
For pensions, some analysts believe changes to tax-free cash or further allowance reviews could be on the horizon as part of deficit management.
What this could mean for you
You may need to revisit portfolio liquidity with us to ensure you keep accessible emergency savings while maximising long-term growth potential.
5. One surprise to watch
Each Budget brings an unexpected twist. This year's "rabbit out of the hat" may be a behavioural tax — for example, an online gambling levy or luxury-property charge. While such moves have limited fiscal impact, they appeal politically and can shift sentiment in certain sectors.
Important Information
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TNS Financial Team
Our team of qualified financial advisors specialise in tax planning, pensions, wealth management, investments and protection planning.