Planning ahead of the 2025 Autumn Budget

As the Labour government faces mounting economic pressures, all eyes turn to the upcoming Autumn Budget on Wednesday 25 November where potential tax rises on inheritance, property, and income are widely anticipated.

In this blog we’ll cover the potential changes speculated to be announced, however, caution is advised, as any premature action could result in unnecessary tax exposure if changes do not materialise.

We’ll be bringing you the key changes post-Budget in our webinar on Thursday 27 November, where experts from across tax, financial planning and corporate finance will unpack the headlines, share practical insights, and answer your questions.

WATCH WEBINAR ON-DEMAND

Information true at date of publication: 03/11/2025

CAPITAL GAINS TAX (CGT)

• There’s speculation that CGT rates may be aligned with income tax rates.
• Bringing forward asset disposals to before 26 November should lock in current CGT rates and the annual exemption, in case it is reduced further. Remember that the tax point for CGT is usually the exchange date, not completion.
• Be mindful of “bed and breakfast” rules for share disposals and repurchases within 30 days.

INHERITANCE TAX (IHT)

• Gifting strategies may be impacted. The current 7-year survival rule could be extended to 10 years and/or there could be a lifetime cap on the value of gifts that can be made free of IHT.
• Consider making gifts before 26 November to look to secure current rules, but be aware of the potential CGT implications for non-cash gifts.
• The “normal expenditure out of income” exemption remains a useful tool. Setting up a standing order before the Budget may help establish regularity, though this exemption itself may be reviewed.

INCOME TAX

• It has been suggested that there could be a simultaneous increase in Income Tax and cut to National Insurance.
• One consideration may be to accelerate dividend payments, trust distributions and bonuses to before 26 November
• There is speculation that National Insurance Contributions may be extended to rental income, and personal allowances may be frozen or reduced, increasing effective tax rates through fiscal drag.

PENSION TAX RELIEF

• The cost of pension tax relief is under scrutiny. A move to a flat-rate relief (e.g. 25–30%) has been suggested, which could reduce benefits for higher-rate taxpayers.
• Bringing forward any pension contributions should secure current relief rates.
• You may want to consider taking the 25% tax-free lump sum before the 26 November in case the rules change. This is a significant financial decision and should be discussed with an Independent Financial Advisor.

BEFORE YOU MAKE A CHANGE

The information in this article is for general guidance only based on speculated changes ahead of the 2025 Autumn Budget, and should not be taken as personalised advice.

We recommend speaking to one of our advisors for tailored support based on your individual circumstances.

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Information true at date of publication: 03/11/2025